Exam 19: Factor Markets and the Distribution of Income

The more work people do,all other things unchanged,the:

The key distinction between a factor of production and an input is that:

A lumberjack cutting giant redwoods in California being paid more than is a person cutting and selling small Christmas trees is an example of wage disparity due primarily to differences in human capital.

The opportunity cost of an hour of leisure increases if the hour of leisure time is spent in an unproductive activity and decreases if the hour of leisure time is spent in a productive activity.

Use the following to answer question: -(Table: Workers and Corn Output)Use Table: Workers and Corn Output.Laura is a price-taking farmer who produces corn.Assume that the wage rate for workers is $125 and the price per bushel of corn is $10.Suppose that Laura is employing 7 workers.If she reduces employment to 6 workers,her profits will:

If John's wage increases from $10 to $12 per hour,his opportunity cost of leisure has increased.

An increase in the market demand for electricians in the factor market might occur if the:

Benny employs people to sell candy bars at intersections.Assume that Benny can obtain candy bars to sell for no cost.The marginal product of the last worker Benny hired is 20 candy bars per hour.Benny pays $7 per worker per hour and sells the candy bars for $1 each.If the price of candy bars rises to $2,then the:

Use the following to answer question: -(Table: Value of the Marginal Product of Labor and Demand)Use Table: Value of the Marginal Product of Labor and Demand.In the table,the total product of labor is shown for the hourly production of power cords.Assume that the market for power cords is perfectly competitive.If the price of a power cord is $2,the value of the marginal product for the fifth worker is:

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print.If the market wage rises to $70,then the:

If the hourly wage increases from $8 to $10 an hour and in response Jim increases the number of hours that he works from 44 to 46,the income effect is dominant.

An efficiency wage is:

The value of the marginal product is calculated as:

A backward-bending supply curve of labor shows that at relatively low wages the _____ effect dominates the _____ effect,and the supply curve has a _____ slope.

If the hourly wage increases from $8 to $10 an hour and in response Jim increases the number of hours that he works from 44 to 46,the substitution effect is dominant.

Use the following to answer question: Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.If the equilibrium market wage rate for bricklayers rises from $80 to $100,the _____ bricklayers will _____.

A _____ wage will _____ the _____ leisure.

Using standard economic theory,a firm should continue hiring workers until:

Gabriella often faces a trade-off between time at the beach and time working as a model.She earns $40 per hour as a model and values going to the beach at the same price.When explaining this to her parents,she says,"The marginal utility per hour working is the same as the marginal utility per hour of going to the beach." This example illustrates:

Use the following to answer question: -(Table: Workers and Corn Output)Use Table: Workers and Corn Output.Laura is a price-taking farmer who produces corn.Assume that the wage rate for workers is $125 and the price per bushel of corn is $10.To maximize profits,Laura should employ _____ workers.