Question 1

Owners of land are compensated according to the

Accepted Answer

A)   absolute level of production from the land.
B)   number of laborers the land can support.
C)   purchase price of the land stock.
D)   value of the marginal product of land.E) B) and C)
F) A) and B)

Question 2

Which of the following events could decrease the demand for labor?

Accepted Answer

A)   An increase in the number of migrant workers
B)   An increase in the marginal productivity of workers
C)   A decrease in demand for the final product produced by labor
D)   A decrease in the supply of laborE) B) and C)
F) A) and D)

Question 3

Table 18-12
The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week. 
-Refer to Table 18-12. Let Q represent the number of boxes of envelopes produced per week. Which of the following points is not a point on this firm's production function?

Accepted Answer

A)   (L = 2, Q = 240) .
B)   (L = 3, Q = 332) .
C)   (L = 4, Q = 408) .
D)   (L = 5, Q = 494) .E) A) and B)
F) A) and C)

Question 4

The demand for computer programmers is inseparably tied to the supply of computer software.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

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

Question 6

If one were to consider a university as a business, the computers in the computer labs would be regarded by economists as

Accepted Answer

A)   technology flows.
B)   mechanization flows.
C)   part of the university's stock of capital.
D)   a flow of services from the university's stock of capital.E) B) and C)
F) All of the above

Question 7

When a labor market experiences a surplus of labor, there is downward pressure on

Accepted Answer

A)   the supply of labor.
B)   the final product price.
C)   wages.
D)   the demand for labor.E) A) and C)
F) A) and B)

Question 8

Consider the labor market for heath care workers. Because of the aging population in the United States, the output price for health care services has increased. Holding all else equal, in the labor market for health care employees the equilibrium wage

Accepted Answer

A)   increases, and the equilibrium quantity of labor increases.
B)   increases, and the equilibrium quantity of labor decreases.
C)   decreases, and the equilibrium quantity of labor increases.
D)   decreases, and the equilibrium quantity of labor decreases.E) A) and B)
F) A) and C)

Question 9

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) None of the above
F) All of the above

Question 10

Which of the following events would shift the labor supply curve?

Accepted Answer

A)   changes in the number of women willing to work
B)   immigration of workers
C)   changing attitudes towards work
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 11

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) B) and C)
F) None of the above

Question 12

Table 18-11
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $2 each and pays the workers a wage of $325 per day. 
-Refer to Table 18-11. What is the third worker's marginal product of labor?

Accepted Answer

A)   120 cupcakes
B)   140 cupcakes
C)   160 cupcakes
D)   180 cupcakesE) None of the above
F) A) and B)

Question 13

Which of the following statements is correct?

Accepted Answer

A)   Neither economic theory nor evidence from the U.S. economy suggests that there is a close link between productivity and real wages.
B)   Economic theory suggests that there is a close link between productivity and real wages, but evidence from the U.S. economy fails to confirm that link.
C)   Evidence from the U.S. economy suggests a close link between productivity and real wages, but economic theory provides no basis for such a link.
D)   Both economic theory and evidence from the U.S. economy suggest that there is a close link between productivity and real wages.E) B) and C)
F) A) and D)

Question 14

Total income in the United States is comprised of

Accepted Answer

A)   wages only.
B)   wages and fringe benefits only.
C)   rents, profits, and interest payments only.
D)   wages, fringe benefits, rents, profits, and interest payments.E) A) and B)
F) None of the above

Question 15

Consider the market for capital equipment. Suppose the market price of firms' output decreases. Holding all else constant, the equilibrium quantity of capital equipment will

Accepted Answer

A)   increase.
B)   decrease.
C)   not change.
D)   It is not possible to determine what will happen to the equilibrium quantity of capital equipment.E) A) and D)
F) A) and C)

Question 16

Table 18-3 
-Refer to Table 18-3. Which firm's production function exhibits constant marginal product?

Accepted Answer

A)   Firm A
B)   Firm B
C)   Firm C
D)   Firm DE) B) and D)
F) B) and C)

Question 17

Firms pay out a portion of their earnings in the form of interest and dividends, and those payments are a portion of the economy's capital income.

Accepted Answer

A) True 
 B)False

Question 18

Angie was the last worker hired by a firm that is competitive in the labor market. The labor market always is in equilibrium. The firm sells its output for $24 per unit. When Angie was hired, the firm's output increased by 2 units per hour as a result. What is Angie's hourly wage?

Accepted Answer

Since the labor market always ...

Question 19

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

Accepted Answer

A)   always rising.
B)   falling only when marginal product is rising.
C)   the labor supply curve.
D)   the labor demand curve.E) A) and B)
F) All of the above

Question 20

Suppose a labor-augmenting technology were developed for a product that increased the marginal product of labor for all workers. Which of the following would happen in the labor market for this product?

Accepted Answer

A)   Demand would decrease.
B)   Demand would increase.
C)   Supply would decrease.
D)   Supply would increase.E) B) and C)
F) A) and C)

Exam 18: The Markets for the Factors of Production

Total income in the United States is comprised of

Correct Answer
verified

If one were to consider a university as a business, the computers in the computer labs would be regarded by economists as

Correct Answer
verified

Angie was the last worker hired by a firm that is competitive in the labor market. The labor market always is in equilibrium. The firm sells its output for $24 per unit. When Angie was hired, the firm's output increased by 2 units per hour as a result. What is Angie's hourly wage?

Correct Answer
verified
Since the labor market always ...
View Answer

Which of the following events would shift the labor supply curve?

Correct Answer
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Correct Answer
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Correct Answer
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Suppose a labor-augmenting technology were developed for a product that increased the marginal product of labor for all workers. Which of the following would happen in the labor market for this product?

Correct Answer
verified

Which of the following events could decrease the demand for labor?

Correct Answer
verified

Consider the market for capital equipment. Suppose the market price of firms' output decreases. Holding all else constant, the equilibrium quantity of capital equipment will

Correct Answer
verified

When a labor market experiences a surplus of labor, there is downward pressure on

Correct Answer
verified

Consider the labor market for heath care workers. Because of the aging population in the United States, the output price for health care services has increased. Holding all else equal, in the labor market for health care employees the equilibrium wage

Correct Answer
verified

Table 18-3 -Refer to Table 18-3. Which firm's production function exhibits constant marginal product?

Correct Answer
verified

Firms pay out a portion of their earnings in the form of interest and dividends, and those payments are a portion of the economy's capital income.

Correct Answer
verified

Table 18-11 Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $2 each and pays the workers a wage of $325 per day. -Refer to Table 18-11. What is the third worker's marginal product of labor?

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

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

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

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

Correct Answer
verified

Owners of land are compensated according to the

Correct Answer
verified

The demand for computer programmers is inseparably tied to the supply of computer software.

Correct Answer
verified

Exam 18: The Markets for the Factors of Production

Total income in the United States is comprised of

Correct AnswerverifiedShow Answer

If one were to consider a university as a business, the computers in the computer labs would be regarded by economists as

Correct AnswerverifiedShow Answer

Angie was the last worker hired by a firm that is competitive in the labor market. The labor market always is in equilibrium. The firm sells its output for $24 per unit. When Angie was hired, the firm's output increased by 2 units per hour as a result. What is Angie's hourly wage?

Correct AnswerverifiedSince the labor market always ...View AnswerShow Answer

Which of the following events would shift the labor supply curve?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose a labor-augmenting technology were developed for a product that increased the marginal product of labor for all workers. Which of the following would happen in the labor market for this product?

Correct AnswerverifiedShow Answer

Which of the following events could decrease the demand for labor?

Correct AnswerverifiedShow Answer

Consider the market for capital equipment. Suppose the market price of firms' output decreases. Holding all else constant, the equilibrium quantity of capital equipment will

Correct AnswerverifiedShow Answer

When a labor market experiences a surplus of labor, there is downward pressure on

Correct AnswerverifiedShow Answer

Consider the labor market for heath care workers. Because of the aging population in the United States, the output price for health care services has increased. Holding all else equal, in the labor market for health care employees the equilibrium wage

Correct AnswerverifiedShow Answer

Table 18-3 -Refer to Table 18-3. Which firm's production function exhibits constant marginal product?

Correct AnswerverifiedShow Answer

Firms pay out a portion of their earnings in the form of interest and dividends, and those payments are a portion of the economy's capital income.

Correct AnswerverifiedShow Answer

Table 18-11 Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $2 each and pays the workers a wage of $325 per day. -Refer to Table 18-11. What is the third worker's marginal product of labor?

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

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

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Owners of land are compensated according to the

Correct AnswerverifiedShow Answer

The demand for computer programmers is inseparably tied to the supply of computer software.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Since the labor market always ...
View Answer

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