Question 1

In general, less productive workers are paid less than more productive workers.

Accepted Answer

A) True 
 B)False

Question 2

The demand for rocket scientists is inseparably linked to the supply of __________.

Accepted Answer

The answer of The demand for rocket scientists is inseparably...

Question 3

Stock dividends and interest payments are examples of factors of production.

Accepted Answer

A) True 
 B)False

Question 4

If the marginal productivity of the sixth worker hired is less than the marginal productivity of the fifth worker hired, then the addition of the sixth worker causes total output to decline.

Accepted Answer

A) True 
 B)False

Question 5

Let L represent the quantity of labor, and let Q represent the quantity of output. Suppose a certain production function includes the points (L = 7, Q = 27), (L = 8, Q = 35), and
(L = 9, Q = 45). Based on these three points, this production function exhibits diminishing marginal product.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is correct?

Accepted Answer

A)  The market for capital is unlike the market for labor because the rental price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
B)  The market for capital is unlike the market for labor because the purchase price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
C)  The market for capital is like the market for labor because the rental price of capital is affected by the marginal product of capital, and the price of labor is affected by the marginal product of labor.
D)  Neither the market for capital nor the market for labor is affected by the marginal product of capital or the marginal product of labor.E) B) and D)
F) All of the above

Question 7

Changes in supply and demand in the labor market will cause changes in wages.

Accepted Answer

A) True 
 B)False

Question 8

Over time, carpenters become aware of more attractive employment opportunities outside of carpentry. Does this development affect the demand for carpenters, or does it affect the supply of carpenters?

Accepted Answer

The change in altern...

Question 9

Does an upward-sloping labor-supply curve mean that people respond to a decrease in the wage by enjoying more leisure or less leisure?

Accepted Answer

An upward-sloping labor-supply...

Question 10

In a competitive market for labor, the equilibrium wage always equals the value of the marginal product.

Accepted Answer

A) True 
 B)False

Question 11

Christine works for a firm that makes tires for cars. How is Christine's wage affected if the demand for cars increases?

Accepted Answer

The increase in the demand for...

Question 12

When a competitive firm hires labor up to the point at which the value of the marginal product of labor equals the wage, it also produces output up to the point at which marginal cost is equal to __________.

Accepted Answer

The answer of When a competitive firm hires labor up...

Exam 18: The Markets for the Factors of Production

In a competitive market for labor, the equilibrium wage always equals the value of the marginal product.

Correct Answer
verified

In general, less productive workers are paid less than more productive workers.

Correct Answer
verified

When a competitive firm hires labor up to the point at which the value of the marginal product of labor equals the wage, it also produces output up to the point at which marginal cost is equal to __________.

Correct Answer
verified

Stock dividends and interest payments are examples of factors of production.

Correct Answer
verified

The demand for rocket scientists is inseparably linked to the supply of __________.

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Does an upward-sloping labor-supply curve mean that people respond to a decrease in the wage by enjoying more leisure or less leisure?

Correct Answer
verified
An upward-sloping labor-supply...
View Answer

Christine works for a firm that makes tires for cars. How is Christine's wage affected if the demand for cars increases?

Correct Answer
verified
The increase in the demand for...
View Answer

Changes in supply and demand in the labor market will cause changes in wages.

Correct Answer
verified

If the marginal productivity of the sixth worker hired is less than the marginal productivity of the fifth worker hired, then the addition of the sixth worker causes total output to decline.

Correct Answer
verified

Let L represent the quantity of labor, and let Q represent the quantity of output. Suppose a certain production function includes the points (L = 7, Q = 27), (L = 8, Q = 35), and (L = 9, Q = 45). Based on these three points, this production function exhibits diminishing marginal product.

Correct Answer
verified

Over time, carpenters become aware of more attractive employment opportunities outside of carpentry. Does this development affect the demand for carpenters, or does it affect the supply of carpenters?

Correct Answer
verified
The change in altern...
View Answer

Exam 18: The Markets for the Factors of Production

In a competitive market for labor, the equilibrium wage always equals the value of the marginal product.

Correct AnswerverifiedShow Answer

In general, less productive workers are paid less than more productive workers.

Correct AnswerverifiedShow Answer

When a competitive firm hires labor up to the point at which the value of the marginal product of labor equals the wage, it also produces output up to the point at which marginal cost is equal to __________.

Correct AnswerverifiedShow Answer

Stock dividends and interest payments are examples of factors of production.

Correct AnswerverifiedShow Answer

The demand for rocket scientists is inseparably linked to the supply of __________.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Does an upward-sloping labor-supply curve mean that people respond to a decrease in the wage by enjoying more leisure or less leisure?

Correct AnswerverifiedAn upward-sloping labor-supply...View AnswerShow Answer

Christine works for a firm that makes tires for cars. How is Christine's wage affected if the demand for cars increases?

Correct AnswerverifiedThe increase in the demand for...View AnswerShow Answer

Changes in supply and demand in the labor market will cause changes in wages.

Correct AnswerverifiedShow Answer

If the marginal productivity of the sixth worker hired is less than the marginal productivity of the fifth worker hired, then the addition of the sixth worker causes total output to decline.

Correct AnswerverifiedShow Answer

Let L represent the quantity of labor, and let Q represent the quantity of output. Suppose a certain production function includes the points (L = 7, Q = 27), (L = 8, Q = 35), and (L = 9, Q = 45). Based on these three points, this production function exhibits diminishing marginal product.

Correct AnswerverifiedShow Answer

Over time, carpenters become aware of more attractive employment opportunities outside of carpentry. Does this development affect the demand for carpenters, or does it affect the supply of carpenters?

Correct AnswerverifiedThe change in altern...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An upward-sloping labor-supply...
View Answer

Correct Answer
verified
The increase in the demand for...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The change in altern...
View Answer