FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: The Markets for the Factors of Production

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 181

Multiple Choice

Review LaterAdd Note

Review Later

Roxanne's hourly wage increases from $9 to $13. Which of the following describes a consequence of the increase in Roxanne's wage?

A) The opportunity cost of Roxanne's leisure time has increased.
B) Roxanne may choose to work fewer hours due to the increase in her wage.
C) If Roxanne's labor supply curve is upward sloping, she will choose to work fewer hours.
D) Both a and b are correct.

Correct Answer

verified

Show Answer

Question 182

Multiple Choice

Review LaterAdd Note

Review Later

Suppose that a toxic waste spill renders half of the land in New Jersey uninhabitable. Assuming that land and labor are complements in the production function, what would happen to the wages earned by workers and rents earned by landowners?

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.

Correct Answer

verified

Show Answer

Question 183

Multiple Choice

Review LaterAdd Note

Figure 18-9 -Refer to Figure 18-9. If the price of apples decreases, the equilibrium wage will

Scenario 18-1 Harry owns a snow-removal business. He hires workers to shovel driveways for him during the winter. The first worker he hires can shovel twelve driveways in one day. When Harry hires two workers, they can shovel a total of 22 driveways in one day. When Harry hires a third worker, he shovels an additional eight driveways in one day. -Refer to Scenario 18-1. Suppose that Harry pays each worker $80 per day and that he charges each customer $20 to have his driveway shoveled. What is the value of the marginal product of labor for the third worker?

As the number of concrete workers in the United States falls, the wage paid to the remaining concrete workers will necessarily fall as well.

Which of the following is an example of a firm's derived demand?

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. What is the marginal product of the fourth unit of labor?

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

Tony is the owner of Tony's Taqueria. Tony is a profit-maximizing owner whose firm operates in a competitive market. An additional worker costs Tony $200 and has a marginal productivity of 40 tacos. Assuming no other variable costs, what is the marginal cost of a taco?

The production function is

Among the people who are characterized below, who has the highest opportunity cost of leisure?

Consider the market for land. Suppose the value of the marginal product of land decreases. Holding all else constant, the equilibrium rental price for land will

An increase in the supply of labor has the effect of decreasing the

The Black Death in fourteenth-century Europe resulted in

Which of the following is an example of a factor of production?

A competitive, profit-maximizing pays its workers a wage of $294 per day. The marginal product of the last worker is 35 units of output. What is the firm's marginal cost of producing its last unit of output?

For a competitive firm, which of the following quantities is equal to marginal cost?

Table 18-1 -Refer to Table 18-1. Suppose that the firm pays its workers $45 per day. Each unit of output sells for $10. How many days of labor should the firm hire?

An increase in the wages paid to high-school student who detassle corn will increase the labor supply of high-school students who weed soybean fields, all else equal.

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