Question 1

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.The shape of the curve suggests the presence of

Accepted Answer

A)   an inverted production function.
B)   diminishing total product.
C)   increasing marginal product.
D)   diminishing marginal product.E) C) and D)
F) A) and B)

Question 2

The current value of the marginal product of land influences the

Accepted Answer

A)   demand for land.
B)   equilibrium rental price of land.
C)   equilibrium purchase price of land.
D)   all of the above.E) None of the above
F) All of the above

Question 3

As a result of severe flooding,a farmer loses half of his productive farmland.He should expect to see the marginal productivity of his remaining land

Accepted Answer

A)   increase.
B)   remain unchanged.
C)   decrease but remain positive.
D)   decrease and become negative.E) C) and D)
F) All of the above

Question 4

Table 18-7
Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.Harold's production function is detailed in the table below.
 
-Refer to Table 18-7.If Harold pays his workers $80 per day and sells his cranberries for $5 per bushel,what is the value of the marginal product of the third worker?

Accepted Answer

A)   $50
B)   $250
C)   $4,000
D)   $20,000E) None of the above
F) All of the above

Question 5

The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?

Accepted Answer

A)   work and wages
B)   work and leisure
C)   wages and productivity
D)   technology and wagesE) C) and D)
F) B) and D)

Question 6

Table 18-9
 
-Refer to Table 18-9.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $2.50 in a competitive market.What is the marginal revenue product of the fourth worker?

Accepted Answer

A)   $200
B)   $300
C)   $400
D)   $500E) A) and B)
F) A) and C)

Question 7

Figure 18-3 
-Refer to Figure 18-3.What is the marginal product of the second worker?

Accepted Answer

A)   4 units
B)   6 units
C)   8 units
D)   12 unitsE) B) and D)
F) C) and D)

Question 8

Table 18-7
Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.Harold's production function is detailed in the table below.
 
-Refer to Table 18-7.What is the marginal product of the fourth worker?

Accepted Answer

A)   250 bushels
B)   62.5 bushels
C)   50 bushels
D)   30 bushelsE) B) and C)
F) A) and C)

Question 9

Table 18-7
Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.Harold's production function is detailed in the table below.
 
-Refer to Table 18-7.What is the marginal product of the third worker?

Accepted Answer

A)   220 bushels
B)   73.33 bushels
C)   50 bushels
D)   30 bushelsE) A) and C)
F) C) and D)

Question 10

The value of the marginal product of labor is calculated by multiplying the

Accepted Answer

A)   price of output by the quantity of labor.
B)   price of output by the marginal product of labor.
C)   wage by the quantity of labor.
D)   wage by the marginal product of labor.E) All of the above
F) B) and C)

Question 11

The inputs used to produce goods and services are called

Accepted Answer

A)   Luddite factors.
B)   marginal products.
C)   labor demands.
D)   factors of production.E) B) and C)
F) A) and D)

Question 12

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 13

Suppose that the labor market for life guards is initially in equilibrium.Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool.What happens to the equilibrium wage and quantity of life guards?

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

Question 14

For a competitive firm experiencing diminishing marginal productivity,the value of the marginal product (i) 
Increases when the price of output decreases.
(ii) 
Changes when marginal product changes.
(iii) 
Diminishes as the number of workers rises.

Accepted Answer

A)   (i) and (ii) 
B)   (i) and (iii) 
C)   (ii) and (iii) 
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 15

In 2010,the total income of all U.S.residents was approximately $15 trillion.

Accepted Answer

A) True 
 B)False

Question 16

Because of diminishing returns,a factor in relatively low supply has a

Accepted Answer

A)   low marginal product and a low rental price.
B)   low marginal product and a high rental price.
C)   high marginal product and a low rental price.
D)   high marginal product and a high rental price.E) A) and B)
F) B) and D)

Question 17

Figure 18-10 1 = $20 and W2 = $22,and the market is always in equilibrium.A shift of the labor demand curve from D1 to D2 would A)  increase the value of the marginal product of labor by $2. B)  increase the value of the marginal product of labor by less than $2. C)  decrease the value of the marginal product of labor by more than $2. D)  not change the value of the marginal product of labor." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 18-10.Assume W1 = $20 and W2 = $22,and the market is always in equilibrium.A shift of the labor demand curve from D1 to D2 would

Accepted Answer

A)   increase the value of the marginal product of labor by $2.
B)   increase the value of the marginal product of labor by less than $2.
C)   decrease the value of the marginal product of labor by more than $2.
D)   not change the value of the marginal product of labor.E) B) and C)
F) All of the above

Question 18

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 labor market for computer programmers? The equilibrium wage

Accepted Answer

A)   increased,and the equilibrium quantity of labor increased.
B)   increased,and the equilibrium quantity of labor decreased.
C)   decreased,and the equilibrium quantity of labor increased.
D)   decreased,and the equilibrium quantity of labor decreased.E) A) and C)
F) A) and B)

Question 19

Table 18-6
 
-Refer to Table 18-6.What is the value of the cell labeled JJ?

Accepted Answer

A)   -$300
B)   -$200
C)   -$100
D)   $0E) B) and C)
F) None of the above

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 18: The Market for the Factors of Production

Figure 18-10 -Refer to Figure 18-10.Assume W₁ = $20 and W₂ = $22,and the market is always in equilibrium.A shift of the labor demand curve from D₁ to D₂ would

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

Correct Answer
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The inputs used to produce goods and services are called

Correct Answer
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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 labor market for computer programmers? The equilibrium wage

Correct Answer
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The current value of the marginal product of land influences the

Correct Answer
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Figure 18-3 -Refer to Figure 18-3.What is the marginal product of the second worker?

Correct Answer
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Suppose that the labor market for life guards is initially in equilibrium.Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool.What happens to the equilibrium wage and quantity of life guards?

Correct Answer
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Correct Answer
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The value of the marginal product of labor is calculated by multiplying the

Correct Answer
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Table 18-9 -Refer to Table 18-9.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $2.50 in a competitive market.What is the marginal revenue product of the fourth worker?

Correct Answer
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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.The shape of the curve suggests the presence of

Correct Answer
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In 2010,the total income of all U.S.residents was approximately $15 trillion.

Correct Answer
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Table 18-7 Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.Harold's production function is detailed in the table below. -Refer to Table 18-7.What is the marginal product of the fourth worker?

Correct Answer
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For a competitive firm experiencing diminishing marginal productivity,the value of the marginal product (i) Increases when the price of output decreases. (ii) Changes when marginal product changes. (iii) Diminishes as the number of workers rises.

Correct Answer
verified

As a result of severe flooding,a farmer loses half of his productive farmland.He should expect to see the marginal productivity of his remaining land

Correct Answer
verified

Table 18-7 Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.Harold's production function is detailed in the table below. -Refer to Table 18-7.What is the marginal product of the third worker?

Correct Answer
verified

The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?

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

Table 18-6 -Refer to Table 18-6.What is the value of the cell labeled JJ?

Correct Answer
verified

Because of diminishing returns,a factor in relatively low supply has a

Correct Answer
verified

Exam 18: The Market for the Factors of Production

Figure 18-10 -Refer to Figure 18-10.Assume W1 = $20 and W2 = $22,and the market is always in equilibrium.A shift of the labor demand curve from D1 to D2 would

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The inputs used to produce goods and services are called

Correct AnswerverifiedShow Answer

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 labor market for computer programmers? The equilibrium wage

Correct AnswerverifiedShow Answer

The current value of the marginal product of land influences the

Correct AnswerverifiedShow Answer

Figure 18-3 -Refer to Figure 18-3.What is the marginal product of the second worker?

Correct AnswerverifiedShow Answer

Suppose that the labor market for life guards is initially in equilibrium.Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool.What happens to the equilibrium wage and quantity of life guards?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The value of the marginal product of labor is calculated by multiplying the

Correct AnswerverifiedShow Answer

Table 18-9 -Refer to Table 18-9.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $2.50 in a competitive market.What is the marginal revenue product of the fourth worker?

Correct AnswerverifiedShow Answer

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.The shape of the curve suggests the presence of

Correct AnswerverifiedShow Answer

In 2010,the total income of all U.S.residents was approximately $15 trillion.

Correct AnswerverifiedShow Answer

Table 18-7 Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.Harold's production function is detailed in the table below. -Refer to Table 18-7.What is the marginal product of the fourth worker?

Correct AnswerverifiedShow Answer

For a competitive firm experiencing diminishing marginal productivity,the value of the marginal product (i) Increases when the price of output decreases. (ii) Changes when marginal product changes. (iii) Diminishes as the number of workers rises.

Correct AnswerverifiedShow Answer

As a result of severe flooding,a farmer loses half of his productive farmland.He should expect to see the marginal productivity of his remaining land

Correct AnswerverifiedShow Answer

Table 18-7 Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.Harold's production function is detailed in the table below. -Refer to Table 18-7.What is the marginal product of the third worker?

Correct AnswerverifiedShow Answer

The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?

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

Table 18-6 -Refer to Table 18-6.What is the value of the cell labeled JJ?

Correct AnswerverifiedShow Answer

Because of diminishing returns,a factor in relatively low supply has a

Correct AnswerverifiedShow Answer

Figure 18-10 -Refer to Figure 18-10.Assume W₁ = $20 and W₂ = $22,and the market is always in equilibrium.A shift of the labor demand curve from D₁ to D₂ would

Correct Answer
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