Question 1

Does the movement of workers from other countries to the U.S. affect the demand for labor in the U.S., or does it affect the supply of labor in the U.S.?

Accepted Answer

The movement of work...

Question 2

John owns a number of hot dog stands in New York City. He hires workers to sell hot dogs at his stands. Which of the following events will lead to a decrease in John's demand for hot dog vendors?

Accepted Answer

A)   Hollywood glamorization of a new movie about a hot dog vendor leads hundreds of high-school students in New York City to apply for a job at John's.
B)   The price of hot dogs falls.
C)   The local hot dog vendors form a union increasing hot dog vendor wages.
D)   The demand curve for hot dogs shifts to the right.E) A) and B)
F) None of the above

Question 3

To maximize profit, a competitive firm hires workers up to the point of intersection of the

Accepted Answer

A)   marginal product curve and the wage line.
B)   value of marginal product curve and the wage line.
C)   value of marginal product curve and the marginal revenue curve.
D)   total revenue curve and the wage line.E) B) and C)
F) C) and D)

Question 4

Immigration is an important

Accepted Answer

A)   explanation for the failure of firms to operate on their labor-demand curves.
B)   explanation for the failure of firms to operate on their output-supply curves.
C)   source of shifts in labor demand.
D)   source of shifts in labor supply.E) B) and C)
F) B) and D)

Question 5

Scenario 18-2
Gertrude Kelp owns three boats that participate in commercial fishing for fresh Pacific salmon off the coast of Alaska. As part of her business she hires a captain and several crew members for each boat. In the market for fresh Pacific salmon, there are thousands of firms like Gertrude's. While Gertrude usually catches a significant number of fish each year, her contribution to the entire harvest of salmon is negligible relative to the size of the market.
-Refer to Scenario 18-2. If Gertrude is a price taker in the labor market, she can choose

Accepted Answer

A)   the price at which she will sell the fish she catches.
B)   how many crew members she will hire.
C)   the wages that she will pay to her crew members.
D)   All of the above.E) A) and B)
F) A) and C)

Question 6

In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker.

Accepted Answer

A) True 
 B)False

Question 7

How does technological advance affect the demand for labor?

Accepted Answer

Technological advance typicall...

Question 8

Table 18-7
 
-Refer to Table 18-7. What is the value for the cell labeled FF?

Accepted Answer

A)   30
B)   40
C)   100
D)   400E) C) and D)
F) B) and D)

Question 9

Economists define capital as the

Accepted Answer

A)   accumulation of goods produced in the past that are being used in the present to produce new goods and services.
B)   goods and services that are most affected by changes in technology.
C)   factors of production that can be rented by firms.
D)   factors of production that can be purchased by firms.E) A) and D)
F) None of the above

Question 10

Suppose that the labor market for high school chemistry teachers is initially in equilibrium. Chemistry teachers use laboratory chemicals as an important part of their jobs. New environmental regulations ban the use of many chemicals, which means that fewer laboratory chemicals are available for high school chemistry teachers to use in their jobs. What happens to the equilibrium wage and quantity of high school chemistry teachers?

Accepted Answer

A)   Both the equilibrium wage and quantity increase.
B)   Both the equilibrium wage and quantity decrease.
C)   The equilibrium wage increases, and the equilibrium quantity decreases.
D)   The equilibrium wage decreases, and the equilibrium quantity increases.E) C) and D)
F) None of the above

Question 11

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

Accepted Answer

A)   average total cost.
B)   average variable cost.
C)   wage.
D)   price per unit of output.E) All of the above
F) None of the above

Question 12

Consider the labor market for short-order cooks. An increase in the wages paid to fast-food workers will cause

Accepted Answer

A)   both equilibrium wages and equilibrium employment to increase in the market for short-order cooks.
B)   both equilibrium wages and equilibrium employment to decrease in the market for short-order cooks.
C)   equilibrium wages to increase and equilibrium employment to decrease in the market for short-order cooks.
D)   equilibrium wages to decrease and equilibrium employment to increase in the market for short-order cooks.E) A) and D)
F) B) and D)

Question 13

Assume the market for handkerchiefs is competitive. A decrease in the market price of handkerchiefs

Accepted Answer

A)   decreases the demand for workers who make handkerchiefs and decreases their equilibrium wage.
B)   decreases the demand for workers who make handkerchiefs and increases their equilibrium wage.
C)   increases the demand for workers who make handkerchiefs and decreases their equilibrium wage.
D)   increases the demand for workers who make handkerchiefs and increases their equilibrium wage..E) B) and C)
F) A) and C)

Question 14

Suppose that the market for labor is initially in equilibrium. An increase in immigration will cause the equilibrium wage

Accepted Answer

A)   and the equilibrium quantity of labor to rise.
B)   and the equilibrium quantity of labor to fall.
C)   to rise and the equilibrium quantity of labor to fall.
D)   to fall and the equilibrium quantity of labor to rise.E) B) and C)
F) C) and D)

Question 15

Consider the market for medical doctors. Suppose the opportunity cost of going to medical school decreases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium wage for doctors will

Accepted Answer

A)   increase.
B)   decrease.
C)   not change.
D)   It is not possible to determine what will happen to the equilibrium wage.E) All of the above
F) None of the above

Question 16

Scenario 18-4
In 1997, Albania experienced a civil war. The civil unrest sent thousands of refugees across the Adriatic Sea to Italy where they sought relief from the fighting.
-Refer to Scenario 18-4. The Albanian civil war probably affected Italian labor markets by causing

Accepted Answer

A)   total employment in Italy to decrease.
B)   wages in Italy to increase.
C)   the marginal product of labor in Italy to decrease.
D)   All of the above are correct.E) C) and D)
F) None of the above

Question 17

Table 18-3
 
-Refer to Table 18-3. For Firm B, the marginal product of labor is

Accepted Answer

A)   increasing.
B)   constant.
C)   decreasing.
D)   negative.E) None of the above
F) A) and D)

Question 18

To say that a firm is competitive in the labor market is to say that the firm

Accepted Answer

A)   has little or no control over the number of workers it hires.
B)   has little or no control over the wage it pays its workers.
C)   is aggressive in pursuing the most skilled workers in the labor market.
D)   is aggressive in trying to keep its workers' wages low.E) A) and C)
F) B) and D)

Question 19

Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. In the market for life guards the equilibrium wage

Accepted Answer

A)   increases because the marginal productivity of life guards increases.
B)   decreases because the marginal productivity of life guards decreases.
C)   increases because the supply of life guards increases.
D)   decreases because the supply of life guards decreases.E) C) and D)
F) B) and D)

Question 20

The demand curve for capital

Accepted Answer

A)   is vertical.
B)   is horizontal.
C)   is derived from households' decisions concerning saving and spending.
D)   reflects the marginal productivity of capital.E) A) and C)
F) A) and B)

Exam 18: The Markets for the Factors of Production

Economists define capital as the

Correct Answer
verified

How does technological advance affect the demand for labor?

Correct Answer
verified
Technological advance typicall...
View Answer

Suppose that the market for labor is initially in equilibrium. An increase in immigration will cause the equilibrium wage

Correct Answer
verified

To maximize profit, a competitive firm hires workers up to the point of intersection of the

Correct Answer
verified

Consider the labor market for short-order cooks. An increase in the wages paid to fast-food workers will cause

Correct Answer
verified

Immigration is an important

Correct Answer
verified

Table 18-3 -Refer to Table 18-3. For Firm B, the marginal product of labor is

Correct Answer
verified

Correct Answer
verified

The demand curve for capital

Correct Answer
verified

Scenario 18-4 In 1997, Albania experienced a civil war. The civil unrest sent thousands of refugees across the Adriatic Sea to Italy where they sought relief from the fighting. -Refer to Scenario 18-4. The Albanian civil war probably affected Italian labor markets by causing

Correct Answer
verified

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

Correct Answer
verified

Consider the market for medical doctors. Suppose the opportunity cost of going to medical school decreases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium wage for doctors will

Correct Answer
verified

Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. In the market for life guards the equilibrium wage

Correct Answer
verified

John owns a number of hot dog stands in New York City. He hires workers to sell hot dogs at his stands. Which of the following events will lead to a decrease in John's demand for hot dog vendors?

Correct Answer
verified

In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker.

Correct Answer
verified

Does the movement of workers from other countries to the U.S. affect the demand for labor in the U.S., or does it affect the supply of labor in the U.S.?

Correct Answer
verified
The movement of work...
View Answer

Assume the market for handkerchiefs is competitive. A decrease in the market price of handkerchiefs

Correct Answer
verified

Correct Answer
verified

Table 18-7 -Refer to Table 18-7. What is the value for the cell labeled FF?

Correct Answer
verified

To say that a firm is competitive in the labor market is to say that the firm

Correct Answer
verified

Exam 18: The Markets for the Factors of Production

Economists define capital as the

Correct AnswerverifiedShow Answer

How does technological advance affect the demand for labor?

Correct AnswerverifiedTechnological advance typicall...View AnswerShow Answer

Suppose that the market for labor is initially in equilibrium. An increase in immigration will cause the equilibrium wage

Correct AnswerverifiedShow Answer

To maximize profit, a competitive firm hires workers up to the point of intersection of the

Correct AnswerverifiedShow Answer

Consider the labor market for short-order cooks. An increase in the wages paid to fast-food workers will cause

Correct AnswerverifiedShow Answer

Immigration is an important

Correct AnswerverifiedShow Answer

Table 18-3 -Refer to Table 18-3. For Firm B, the marginal product of labor is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The demand curve for capital

Correct AnswerverifiedShow Answer

Scenario 18-4 In 1997, Albania experienced a civil war. The civil unrest sent thousands of refugees across the Adriatic Sea to Italy where they sought relief from the fighting. -Refer to Scenario 18-4. The Albanian civil war probably affected Italian labor markets by causing

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Consider the market for medical doctors. Suppose the opportunity cost of going to medical school decreases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium wage for doctors will

Correct AnswerverifiedShow Answer

Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. In the market for life guards the equilibrium wage

Correct AnswerverifiedShow Answer

John owns a number of hot dog stands in New York City. He hires workers to sell hot dogs at his stands. Which of the following events will lead to a decrease in John's demand for hot dog vendors?

Correct AnswerverifiedShow Answer

In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker.

Correct AnswerverifiedShow Answer

Does the movement of workers from other countries to the U.S. affect the demand for labor in the U.S., or does it affect the supply of labor in the U.S.?

Correct AnswerverifiedThe movement of work...View AnswerShow Answer

Assume the market for handkerchiefs is competitive. A decrease in the market price of handkerchiefs

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 18-7 -Refer to Table 18-7. What is the value for the cell labeled FF?

Correct AnswerverifiedShow Answer

To say that a firm is competitive in the labor market is to say that the firm

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Technological advance typicall...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The movement of work...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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