Question 1

If the output price of a product rises,the demand for capital will increase,raising the rental price of capital.

Accepted Answer

A) True 
 B)False

Question 2

Suppose the supply of capital decreases.As a result,the quantity of capital used in production and the rental price of capital will both fall.

Accepted Answer

A) True 
 B)False

Question 3

Figure 18-1 
-Refer to Figure 18-1.What is measured on the vertical axis of the graph?

Accepted Answer

A)   the rate of technological progress
B)   wages paid to workers in markets where capital goods are produced
C)   wages paid to workers in markets where capital goods are not produced
D)   the rental price of capitalE) B) and C)
F) None of the above

Question 4

Suppose that a large lake in the middle of Minnesota evaporates,leaving more fertile farm land for growing corn available.Assuming that land and labor are complements in a farming production function,what would happen to the wages earned by workers and rents earned by landowners?

Accepted Answer

A)   Both wages and rents would increase.
B)   Both wages and rents would decrease.
C)   Wages would increase,and rents would decrease.
D)   Wages would decrease,and rents would increase.E) B) and C)
F) A) and D)

Question 5

Table 18-8
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 18-8.Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day.What is the value of the marginal product of labor for the second worker?

Accepted Answer

A)   $300
B)   $650
C)   $9,600
D)   $20,800E) A) and B)
F) A) and C)

Question 6

Which of the following could increase the labor-supply curve for computer-repair technicians?

Accepted Answer

A)   an increase in the wages paid to computer-repair technicians
B)   an increase in immigration
C)   a change in the work preferences of men,with more of them preferring to be stay-at-home fathers
D)   an increase in the wages paid to television-repair techniciansE) A) and B)
F) C) and D)

Question 7

Abdul is trying to convince the owner of a sandwich shop to hire him.He argues that he could help the shop sell an additional five sandwiches per day at the market price of $8 each.If the facts are not in dispute,but the owner does not hire him,then

Accepted Answer

A)   the wage rate must be less than $40 per day.
B)   hiring Abdul would involve a negative marginal product.
C)   the wage rate must be more than $40 per day.
D)   the wage rate must be less than $8 per day.E) A) and D)
F) A) and C)

Question 8

The substantial increases in output per worker over the last 50 or so years are largely explained by __________.

Accepted Answer

technologi...

Question 9

Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day.If radios can be sold for $10 each,the value of marginal product of the ninth worker is

Accepted Answer

A)   20 radios.
B)   90 radios.
C)   $200.
D)   $900.E) All of the above
F) C) and D)

Question 10

From 1959 to 2009,inflation-adjusted wages increased by 131 percent in the U.S.As a result,firms reduced the amount of labor they employed by nearly 20 percent.

Accepted Answer

A) True 
 B)False

Question 11

The value of the marginal product is

Accepted Answer

A)   total revenue minus total cost.
B)   the change in total output divided by the change in an input.
C)   the marginal product of an input times the price of the output.
D)   total output divided by total inputs.E) B) and D)
F) A) and B)

Question 12

Suppose the government designates certain areas within a community to be "wetlands," making it illegal to build on the land.What happens to land not classified as "wetlands" within the community? (i) 
The price of non-wetland land will rise.
(ii) 
The marginal product of non-wetland land will fall.
(iii) 
The marginal product of non-wetland land will rise.

Accepted Answer

A)   (i) and (ii) only
B)   (ii) only
C)   (i) and (iii) only
D)   (iii) onlyE) B) and C)
F) C) and D)

Question 13

The distribution of immigrant workers in the United States is

Accepted Answer

A)   concentrated in low-skilled jobs.
B)   concentrated in high-skilled jobs.
C)   evenly distributed among low-,medium-,and high-skilled jobs.
D)   more concentrated in low- and high-skilled jobs than in medium-skilled jobs.E) A) and B)
F) All of the above

Question 14

Suppose that technological progress increases the productivity of teachers.Which of the following accurately describes the labor market for teachers after the technological change? Equilibrium wages will

Accepted Answer

A)   rise,and the equilibrium quantity of teachers employed will fall.
B)   rise,and the equilibrium quantity of teachers employed will rise.
C)   fall,and the equilibrium quantity of teachers employed will fall.
D)   fall,and the equilibrium quantity of teachers employed will rise.E) All of the above
F) A) and B)

Question 15

Which of the following is not correct?

Accepted Answer

A)   High-skilled immigration increases GDP growth.
B)   In the United States,about 40 percent of PhD.scientists and engineers are foreign born.
C)   Low-skilled immigration lowers the earnings of native-born workers by 10-20 percent.
D)   Illegal immigrants may pay less in taxes,but they also are eligible for fewer government benefits.E) A) and B)
F) A) and C)

Question 16

Which of the following events would lead to an increase in the supply of labor?

Accepted Answer

A)   The price of a firm's product increases.
B)   A country experiences an increase in immigrant labor.
C)   The development of a new labor-augmenting technology.
D)   All of the above are correct.E) B) and D)
F) All of the above

Question 17

Approximately how much of the income in the United States is earned by workers in the form of wages and fringe benefits?

Accepted Answer

A)   25 percent
B)   50 percent
C)   75 percent
D)   90 percentE) A) and D)
F) All of the above

Question 18

If the value of the marginal product of labor exceeds the wage,then the firm could

Accepted Answer

A)   increase profit by hiring additional labor.
B)   increase profit by reducing the amount of labor hired.
C)   increase revenue by lowering output.
D)   reduce total cost by hiring additional workers.E) A) and B)
F) A) and D)

Question 19

A profit-maximizing,competitive firm for which the marginal product of labor is diminishing also experiences

Accepted Answer

A)   a perfectly inelastic supply of labor.
B)   a perfectly elastic supply of labor.
C)   a downward-sloping demand for labor.
D)   an upward-sloping demand for labor.E) A) and B)
F) All of the above

Question 20

If the demand curve for beef shifts to the right,then the value of the marginal product of labor for butchers will

Accepted Answer

A)   rise.
B)   fall.
C)   remain unchanged.
D)   rise or fall;either is possible.E) None of the above
F) All of the above

Exam 18: The Market for the Factors of Production

Figure 18-1 -Refer to Figure 18-1.What is measured on the vertical axis of the graph?

Correct Answer
verified

If the value of the marginal product of labor exceeds the wage,then the firm could

Correct Answer
verified

The value of the marginal product is

Correct Answer
verified

Abdul is trying to convince the owner of a sandwich shop to hire him.He argues that he could help the shop sell an additional five sandwiches per day at the market price of $8 each.If the facts are not in dispute,but the owner does not hire him,then

Correct Answer
verified

Which of the following could increase the labor-supply curve for computer-repair technicians?

Correct Answer
verified

If the output price of a product rises,the demand for capital will increase,raising the rental price of capital.

Correct Answer
verified

A profit-maximizing,competitive firm for which the marginal product of labor is diminishing also experiences

Correct Answer
verified

From 1959 to 2009,inflation-adjusted wages increased by 131 percent in the U.S.As a result,firms reduced the amount of labor they employed by nearly 20 percent.

Correct Answer
verified

Suppose that a large lake in the middle of Minnesota evaporates,leaving more fertile farm land for growing corn available.Assuming that land and labor are complements in a farming production function,what would happen to the wages earned by workers and rents earned by landowners?

Correct Answer
verified

Which of the following events would lead to an increase in the supply of labor?

Correct Answer
verified

Suppose that technological progress increases the productivity of teachers.Which of the following accurately describes the labor market for teachers after the technological change? Equilibrium wages will

Correct Answer
verified

Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day.If radios can be sold for $10 each,the value of marginal product of the ninth worker is

Correct Answer
verified

Correct Answer
verified

The substantial increases in output per worker over the last 50 or so years are largely explained by __________.

Correct Answer
verified
technologi...
View Answer

Approximately how much of the income in the United States is earned by workers in the form of wages and fringe benefits?

Correct Answer
verified

Suppose the supply of capital decreases.As a result,the quantity of capital used in production and the rental price of capital will both fall.

Correct Answer
verified

The distribution of immigrant workers in the United States is

Correct Answer
verified

If the demand curve for beef shifts to the right,then the value of the marginal product of labor for butchers will

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Correct Answer
verified

Exam 18: The Market for the Factors of Production

Figure 18-1 -Refer to Figure 18-1.What is measured on the vertical axis of the graph?

Correct AnswerverifiedShow Answer

If the value of the marginal product of labor exceeds the wage,then the firm could

Correct AnswerverifiedShow Answer

The value of the marginal product is

Correct AnswerverifiedShow Answer

Abdul is trying to convince the owner of a sandwich shop to hire him.He argues that he could help the shop sell an additional five sandwiches per day at the market price of $8 each.If the facts are not in dispute,but the owner does not hire him,then

Correct AnswerverifiedShow Answer

Which of the following could increase the labor-supply curve for computer-repair technicians?

Correct AnswerverifiedShow Answer

If the output price of a product rises,the demand for capital will increase,raising the rental price of capital.

Correct AnswerverifiedShow Answer

A profit-maximizing,competitive firm for which the marginal product of labor is diminishing also experiences

Correct AnswerverifiedShow Answer

From 1959 to 2009,inflation-adjusted wages increased by 131 percent in the U.S.As a result,firms reduced the amount of labor they employed by nearly 20 percent.

Correct AnswerverifiedShow Answer

Suppose that a large lake in the middle of Minnesota evaporates,leaving more fertile farm land for growing corn available.Assuming that land and labor are complements in a farming production function,what would happen to the wages earned by workers and rents earned by landowners?

Correct AnswerverifiedShow Answer

Which of the following events would lead to an increase in the supply of labor?

Correct AnswerverifiedShow Answer

Suppose that technological progress increases the productivity of teachers.Which of the following accurately describes the labor market for teachers after the technological change? Equilibrium wages will

Correct AnswerverifiedShow Answer

Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day.If radios can be sold for $10 each,the value of marginal product of the ninth worker is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The substantial increases in output per worker over the last 50 or so years are largely explained by __________.

Correct Answerverifiedtechnologi...View AnswerShow Answer

Approximately how much of the income in the United States is earned by workers in the form of wages and fringe benefits?

Correct AnswerverifiedShow Answer

Suppose the supply of capital decreases.As a result,the quantity of capital used in production and the rental price of capital will both fall.

Correct AnswerverifiedShow Answer

The distribution of immigrant workers in the United States is

Correct AnswerverifiedShow Answer

If the demand curve for beef shifts to the right,then the value of the marginal product of labor for butchers will

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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technologi...
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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