Filters
Question type
Study Flashcards

Figure 18-8 This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D1 and D2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. Figure 18-8 This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D<sub>1</sub><sub> </sub>and D<sub>2</sub><sub> </sub>are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. -Refer to Figure 18-8. Which of the following is a possible explanation of the shift of the labor-demand curve from D1 to D2? A) The wage earned by automobile workers increased. B) The price of automobiles increased. C) The opportunity cost of leisure, as perceived by automobile workers, decreased. D) Large segments of the population changed their tastes regarding leisure versus work. -Refer to Figure 18-8. Which of the following is a possible explanation of the shift of the labor-demand curve from D1 to D2?


A) The wage earned by automobile workers increased.
B) The price of automobiles increased.
C) The opportunity cost of leisure, as perceived by automobile workers, decreased.
D) Large segments of the population changed their tastes regarding leisure versus work.

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

Suppose an influenza pandemic were to significantly decrease the population of a country. We would predict a decrease in the marginal product of land in that country.

A) True
B) False

Correct Answer

verifed

verified

Because workers in the U.S. economy receive most of the total income earned, which of the following factors of production is considered to be the most important?


A) profit
B) wages
C) interest
D) labor

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Table 18-3 Table 18-3 -Refer to Table 18-3. For Firm C, the marginal product of labor is A) increasing. B) constant. C) decreasing. D) negative. -Refer to Table 18-3. For Firm C, the marginal product of labor is


A) increasing.
B) constant.
C) decreasing.
D) negative.

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

When a firm hires labor up to the point where the wage is equal to the value of the marginal product of labor, it is


A) minimizing labor costs.
B) guaranteeing that labor costs do not exceed fixed costs.
C) maximizing the number of workers it can hire and still experience a positive profit.
D) maximizing profit.

E) A) and B)
F) All of the above

Correct Answer

verifed

verified

Table 18-1 Table 18-1 -Refer to Table 18-1. Suppose that the firm pays its workers $50 per day. Each unit of output sells for $20. How many days of labor should the firm hire? A) 3 B) 4 C) 5 D) 6 -Refer to Table 18-1. Suppose that the firm pays its workers $50 per day. Each unit of output sells for $20. How many days of labor should the firm hire?


A) 3
B) 4
C) 5
D) 6

E) A) and B)
F) B) and D)

Correct Answer

verifed

verified

Bill is a laborer. What is the relationship between Bill's wage and his opportunity cost of an hour of leisure?

Correct Answer

verifed

verified

Bill's wage is equal...

View Answer

Figure 18-8 This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D1 and D2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. Figure 18-8 This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D<sub>1</sub><sub> </sub>and D<sub>2</sub><sub> </sub>are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. -Refer to Figure 18-8. Which of the following events would most likely explain the shift of the labor-demand curve from D1 to D2? A) The price of automobiles decreased. B) A large number of immigrants entered the automobile-worker market. C) A technological advance increased the marginal product of automobile workers. D) All of the above are correct. -Refer to Figure 18-8. Which of the following events would most likely explain the shift of the labor-demand curve from D1 to D2?


A) The price of automobiles decreased.
B) A large number of immigrants entered the automobile-worker market.
C) A technological advance increased the marginal product of automobile workers.
D) All of the above are correct.

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

Correct Answer

verifed

verified

Figure 18-7 Figure 18-7 -Refer to Figure 18-7. If the relevant labor supply curve is S2 and the current wage is W1, A) there is a surplus of labor. B) the quantity of labor demanded exceeds the quantity of labor supplied. C) an increase in the minimum wage could restore equilibrium in the market. D) firms will need to raise the wage to restore equilibrium. -Refer to Figure 18-7. If the relevant labor supply curve is S2 and the current wage is W1,


A) there is a surplus of labor.
B) the quantity of labor demanded exceeds the quantity of labor supplied.
C) an increase in the minimum wage could restore equilibrium in the market.
D) firms will need to raise the wage to restore equilibrium.

E) B) and D)
F) A) and B)

Correct Answer

verifed

verified

Diminishing marginal product affects the shape of the production function in what way?


A) The slope of the production function decreases as the quantity of input increases.
B) The production function becomes steeper as the quantity of input increases.
C) The production function slopes downward.
D) The production function is horizontal beyond a certain quantity of input.

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

Correct Answer

verifed

verified

Figure 18-4 The graph below illustrates the market for nurses who work in doctors' offices. Figure 18-4 The graph below illustrates the market for nurses who work in doctors' offices. -Refer to Figure 18-4. If the supply of medical supplies that nurses use when performing sports physicals decreases, what happens in the market for nurses? A) Demand increases from D1 to D2. B) Demand decreases from D2 to D1. C) Supply increases from S1 to S2. D) Supply decreases from S2 to S1. -Refer to Figure 18-4. If the supply of medical supplies that nurses use when performing sports physicals decreases, what happens in the market for nurses?


A) Demand increases from D1 to D2.
B) Demand decreases from D2 to D1.
C) Supply increases from S1 to S2.
D) Supply decreases from S2 to S1.

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

Correct Answer

verifed

verified

Factor markets for chocolate bars are influenced by the


A) demand for chocolate bars.
B) marginal productivities of labor and capital.
C) market prices for final goods and services.
D) All of the above are correct.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics decreases for many individuals. Suppose it generally takes about five years to get a Ph.D. in economics. Holding all else constant, in five years the equilibrium wage for university economics professors will


A) increase.
B) decrease.
C) not change.
D) It is not possible to determine what will happen to the equilibrium wage.

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

Correct Answer

verifed

verified

Table 18-9 The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis. Table 18-9 The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis. -Refer to Table 18-9. Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day. How many workers should this firm hire to maximize its profit? A) 2 workers B) 3 workers C) 4 workers D) 5 workers -Refer to Table 18-9. Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day. How many workers should this firm hire to maximize its profit?


A) 2 workers
B) 3 workers
C) 4 workers
D) 5 workers

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

Correct Answer

verifed

verified

Figure 18-12. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. Figure 18-12. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. -Refer to Figure 18-12. If the shop charges $150 per repair, then what is the value of the marginal product of the second mechanic? -Refer to Figure 18-12. If the shop charges $150 per repair, then what is the value of the marginal product of the second mechanic?

Correct Answer

verifed

verified

The marginal product of the se...

View Answer

An increase in the demand for houses


A) increases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
B) increases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.
C) decreases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
D) decreases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.

E) All of the above
F) A) and D)

Correct Answer

verifed

verified

Labor-augmenting technological advances increase the marginal productivity of labor.

A) True
B) False

Correct Answer

verifed

verified

Figure 18-2 The figure below shows the production function for a particular firm. Figure 18-2 The figure below shows the production function for a particular firm. -Refer to Figure 18-2. Suppose the firm pays a wage equal to $160 per unit of labor and sells its output at $10 per unit. What is the value of the marginal product of labor for the fourth worker? A) 10 units B) $100 C) $1,000 D) $1,600 -Refer to Figure 18-2. Suppose the firm pays a wage equal to $160 per unit of labor and sells its output at $10 per unit. What is the value of the marginal product of labor for the fourth worker?


A) 10 units
B) $100
C) $1,000
D) $1,600

E) C) and D)
F) None of the above

Correct Answer

verifed

verified

A significant slowdown in the growth of productivity persisted in the U.S. economy between


A) 1959 and 1973.
B) 1973 and 1995.
C) 1973 and 2012.
D) 1995 and 2012.

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

Correct Answer

verifed

verified

For a profit-maximizing, competitive firm, the value of the marginal product of labor


A) increases when the price of output decreases.
B) is the firm's demand for labor.
C) equals the marginal product of labor divided by the wage rate.
D) All of the above are correct.

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

Correct Answer

verifed

verified

Showing 341 - 360 of 564

Related Exams

Exam 1

Ten Principles of Economics

439 Questions

Exam 2

Thinking Like an Economist

617 Questions

Exam 3

Interdependence and the Gains From Trade

527 Questions

Exam 4

The Market Forces of Supply and Demand

698 Questions

Exam 5

Elasticity and Its Application

595 Questions

Exam 6

Supply, Demand, and Government Policies

644 Questions

Exam 7

Consumers, Producers, and the Efficiency of Markets

549 Questions

Exam 8

Application: The Costs of Taxation

511 Questions

Exam 9

Application: International Trade

493 Questions

Exam 10

Externalities

524 Questions

Exam 11

Public Goods and Common Resources

433 Questions

Exam 12

The Design of the Tax System

551 Questions

Exam 13

The Costs of Production

420 Questions

Exam 14

Firms in Competitive Markets

543 Questions

Exam 15

Monopoly

637 Questions

Exam 16

Monopolistic Competition

587 Questions

Exam 17

Oligopoly

496 Questions

Exam 19

Earnings and Discrimination

490 Questions

Exam 20

Income Inequality and Poverty

457 Questions

Exam 21

The Theory of Consumer Choice

440 Questions

Exam 22

Frontiers of Microeconomics

441 Questions

Show Answer