FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: The Markets for the Factors of Production

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

A competitive firm sells its output for $30 per unit.The marginal product of the 10th worker is 20 units of output per day;the marginal product of the 11th worker is 16 units of output per day.The firm pays its workers a wage of $150 per day.

A) For the 11th worker,the value of the marginal product of labor is $120.
B) For the 11th worker,the value of the marginal product of labor is $480.
C) For the 11th worker,the value of the marginal product of labor is $600.
D) For the 11th worker,the value of the marginal product of labor is $2,400.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Consider the labor market for computer programmers.During the late 1990s,the value of the marginal product of all computer programmers increased dramatically.Holding all else equal,what effect did this process have on the equilibrium quantity in the labor market for computer programmers?

A) The equilibrium quantity increased.
B) The equilibrium quantity decreased.
C) The equilibrium quantity did not change.
D) It is not possible to determine the equilibrium quantity.

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

When deciding whether to hire an additional worker,firms look at how the additional worker would affect

A change in the supply of any one factor alters the earnings of all the other factors.

Figure 18-1.On the graph,L represents the quantity of labor and Q represents the quantity of output per week. -Refer to Figure 18-1.Suppose the firm hires each unit of labor for $700 per week,and each unit of output sells for $9.How many workers will the firm hire to maximize its profit?

Table 18-8 -Refer to Table 18-8.Suppose that the firm pays its workers $80 per day.Each unit of output sells for $15.How many days of labor should the firm hire?

The rental price of capital is determined by

When a production function exhibits a diminishing,but positive,marginal product of labor,

A competitive firm will hire workers up to the point at which the value of the marginal product of labor equals the

As a result of severe flooding,a farmer loses half of his productive farmland.If the property of diminishing returns applies to all factors of production,he should expect to see

To compute the value of the marginal product of capital,you should multiply the market price of the good by the marginal product of capital.

In economics,the term capital is used to refer to

Dave is the owner of Dave's Pizza Palace.Dave is a profit-maximizing owner whose firm operates in a competitive market.An additional worker costs Dave $200 and has a marginal productivity of 40 pizzas.Assuming no other variable costs,what is the marginal cost of a pizza?

The demand curve for each factor of production equals the value of the marginal product of that factor.

When an individual's income goes up,that individual may choose to supply less labor,resulting in a backward-sloping labor supply curve.

Figure 18-2.The figure shows a particular firm's value-of-marginal-product (VMP) curve.On the horizontal axis,L represents the number of workers.The time frame is daily. -Refer to Figure 18-2.Suppose one point on the firm's production function is (L = 3,Q = 180) ,where L = number of workers and Q = quantity of output.If the firm sells its output for $5 per unit,then

For a snow-removal business,the capital stock would include inputs such as snow blowers and shovels.

Increases in productivity are not responsible for increased standards of living in the United States.

Suppose the following events occur in the market for university economics professors. Event 1: A recession in the U.S.economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor. Event 2: An increasing number of students in U.S.primary and secondary schools increases the number of students entering college,increasing the output price of university economics professors' services. As a result of these two events,holding all else constant,what will likely happen to the equilibrium wage of university economics professors?

Scenario 18-3 Jerry has two jobs,one for the winter and one for the summer.In the winter,he works as a lift attendant at a ski resort where he earns $10 per hour.During the summer,he drives a tour bus around the ski resort,earning $12 per hour. -Refer to Scenario 18-3.If Jerry takes fewer hours of leisure in the summer than in the winter,we can assume that his labor supply curve