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Exam 18: The Market For the Factors of Production.

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Question 41

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Scenario 18-5 Suppose that workers from northern Minnesota, North Dakota, and Montana decide to emigrate to southern Canada. -Refer to Scenario 18-5.In the labor market in southern Canada,the equilibrium wage

A) and the equilibrium quantity of labor will rise.
B) and the equilibrium quantity of labor will fall.
C) will rise, and the equilibrium quantity of labor will fall.
D) will fall, and the equilibrium quantity of labor will rise.

E) C) and D)
F) B) and C)

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Question 42

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Wendy's hourly wage decreases from $15 to $12.Which of the following describes a consequence of the decrease in Wendy's wage?

A) The opportunity cost of Wendy's leisure time has decreased.
B) Wendy may choose to work more hours due to the decrease in her wage.
C) Wendy may choose to work fewer hours due to the decrease in her wage.
D) All of the above are correct.

E) None of the above
F) B) and D)

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Question 43

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

Because a firm's demand for a factor of production is derived from its decision to supply a good in the market,it is called a

Figure 18-8 This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D₁ and D₂ are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. -Refer to Figure 18-8.Which of the following events would most likely explain the shift of the labor-demand curve from D₁ to D₂?

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?

In the United States,technological advances help explain persistently rising employment in the face of rising wages.

According to the neoclassical theory of distribution,the wages paid to workers depend on the

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

If the value of the marginal product of labor exceeds the wage,then hiring another worker increases the firm's

A competitive firm sells its output for $25 per unit.The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per day.The firm pays its workers a wage of $160 per day.For the 10th worker,the value of the marginal product of labor is

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.

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

Competitive firms decide how much output to sell by producing output until the price of the good equals

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

Prairie Cabinets produces and sells custom kitchen cabinets.The firm has determined that if it hires 10 workers,it can produce 10 sets of cabinets per day.If it hires 11 workers,it can produce 12 sets of cabinets per day.It sells each set of cabinets for $2,000,and it pays each of its workers $200 per day.Which of the following is correct?

The negative slope of the value of marginal product curve is most easily explained by

Linda's Autoplex performs oil changes on automobiles,light trucks,and sport utility vehicles.She is a profit-maximizing business owner whose firm operates in a competitive market.The marginal cost of an oil change is $20.The marginal productivity of the last worker that Linda hired was 1.5 oil changes per hour.What is the maximum hourly wage that Linda was willing to pay the last worker hired?

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?

Profit maximization by firms ensures that the equilibrium wage always equals the value of the marginal product of capital.