Exam 19: Factor Markets and the Distribution of Income

Capital,the factor of production,includes physical capital (such as buildings and machines),human capital (improvement in labor by education and knowledge),and financial capital (such as stock market investments).

(True/False)

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Question 21

In terms of labor supply,the income effect of a higher wage causes a(n):

(Multiple Choice)

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Question 22

The factor distribution of income in the United States reflects that:

(Multiple Choice)

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Question 23

Unions and efficiency wages usually lead to wages that are below the equilibrium level.

(True/False)

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Question 24

A firm's demand curve for labor will shift because of:

(Multiple Choice)

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Question 25

Beyond some point,a higher wage may induce an individual to work _,and the labor supply curve may then _.

(Multiple Choice)

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Question 26

Compensating differentials are used to motivate employees and to reduce worker turnover.

(True/False)

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Question 27

The trade-off between work and leisure underlying the supply of labor involves the income effect and the _____ effect.

(Multiple Choice)

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Question 28

A profit-maximizing firm will base its decision to hire workers on the additional costs and benefits of each worker.If the extra output that is produced by hiring one more unit of labor adds more to _ than to _,the firm will increase its profit by increasing the use of labor.

(Multiple Choice)

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Question 29

Suppose that a firm sells a good for a perfectly competitive price of $5.The equilibrium wage rate is $10.The first worker it hires produces five units.Two workers produce a total of nine units.If it hires two workers,the value of marginal product for the second worker is:

(Multiple Choice)

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Question 30

Use the following to answer question: -(Table: Total Product of Labor at Debbie's Bakery)Use Table: Total Product of Labor at Debbie's Bakery.Debbie can sell cakes at $10 each.Debbie must pay each worker $30 per day.Now suppose the government imposes a minimum wage law that all bakeries must pay no less than $50 per day.Debbie ___ employment from _ workers to ___ worker(s).

(Multiple Choice)

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Question 31

Wage differences across jobs reflecting the fact that some jobs are less pleasant or safe than others are called efficiency wages.

(True/False)

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Question 32

A backward-bending labor supply curve is possible only if leisure is an inferior good.

(True/False)

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Question 33

If an individual labor supply curve is negatively sloped,the substitution effect dominates the income effect.

(True/False)

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Question 34

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print.Now suppose that,during the holiday season,the price of poster-size copies increases to $12.What happens?

(Multiple Choice)

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Question 35

Mary is considering hiring another worker in an assembly line for Bluetooth speakers.Mary knows the average product of labor is 15 speakers per day.She also believes that the next worker hired will produce an extra 12 speakers per day.A speaker sells for $10.Assuming that the market for speakers is perfectly competitive,Mary should hire another worker:

(Multiple Choice)

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Question 36

A firm has hired the profit-maximizing number of workers when the wage is:

(Multiple Choice)

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Question 37

Over the past several years,the demand for phone operators has fallen dramatically.Which factor would account for this development?

(Multiple Choice)

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Question 38

An objection to the marginal productivity theory of income distribution is that many people believe it is a moral justification for the unequal distribution of income.

(True/False)

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Question 39

Derived demand for a factor of production means that:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 316

Capital,the factor of production,includes physical capital (such as buildings and machines),human capital (improvement in labor by education and knowledge),and financial capital (such as stock market investments).

In terms of labor supply,the income effect of a higher wage causes a(n):

The factor distribution of income in the United States reflects that:

Unions and efficiency wages usually lead to wages that are below the equilibrium level.

A firm's demand curve for labor will shift because of:

Beyond some point,a higher wage may induce an individual to work _,and the labor supply curve may then _.

Compensating differentials are used to motivate employees and to reduce worker turnover.

The trade-off between work and leisure underlying the supply of labor involves the income effect and the _____ effect.

A profit-maximizing firm will base its decision to hire workers on the additional costs and benefits of each worker.If the extra output that is produced by hiring one more unit of labor adds more to _ than to _,the firm will increase its profit by increasing the use of labor.

Suppose that a firm sells a good for a perfectly competitive price of $5.The equilibrium wage rate is $10.The first worker it hires produces five units.Two workers produce a total of nine units.If it hires two workers,the value of marginal product for the second worker is:

Wage differences across jobs reflecting the fact that some jobs are less pleasant or safe than others are called efficiency wages.

A backward-bending labor supply curve is possible only if leisure is an inferior good.

If an individual labor supply curve is negatively sloped,the substitution effect dominates the income effect.

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print.Now suppose that,during the holiday season,the price of poster-size copies increases to $12.What happens?

A firm has hired the profit-maximizing number of workers when the wage is:

Over the past several years,the demand for phone operators has fallen dramatically.Which factor would account for this development?

An objection to the marginal productivity theory of income distribution is that many people believe it is a moral justification for the unequal distribution of income.

Derived demand for a factor of production means that:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Exam 19: Factor Markets and the Distribution of Income

Capital,the factor of production,includes physical capital (such as buildings and machines),human capital (improvement in labor by education and knowledge),and financial capital (such as stock market investments).

In terms of labor supply,the income effect of a higher wage causes a(n):

The factor distribution of income in the United States reflects that:

Unions and efficiency wages usually lead to wages that are below the equilibrium level.

A firm's demand curve for labor will shift because of:

Beyond some point,a higher wage may induce an individual to work _____,and the labor supply curve may then _____.

Compensating differentials are used to motivate employees and to reduce worker turnover.

The trade-off between work and leisure underlying the supply of labor involves the income effect and the _____ effect.

A profit-maximizing firm will base its decision to hire workers on the additional costs and benefits of each worker.If the extra output that is produced by hiring one more unit of labor adds more to _____ than to _____,the firm will increase its profit by increasing the use of labor.

Suppose that a firm sells a good for a perfectly competitive price of $5.The equilibrium wage rate is $10.The first worker it hires produces five units.Two workers produce a total of nine units.If it hires two workers,the value of marginal product for the second worker is:

Wage differences across jobs reflecting the fact that some jobs are less pleasant or safe than others are called efficiency wages.

A backward-bending labor supply curve is possible only if leisure is an inferior good.

If an individual labor supply curve is negatively sloped,the substitution effect dominates the income effect.

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print.Now suppose that,during the holiday season,the price of poster-size copies increases to $12.What happens?

A firm has hired the profit-maximizing number of workers when the wage is:

Over the past several years,the demand for phone operators has fallen dramatically.Which factor would account for this development?

An objection to the marginal productivity theory of income distribution is that many people believe it is a moral justification for the unequal distribution of income.

Derived demand for a factor of production means that:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Beyond some point,a higher wage may induce an individual to work _,and the labor supply curve may then _.

A profit-maximizing firm will base its decision to hire workers on the additional costs and benefits of each worker.If the extra output that is produced by hiring one more unit of labor adds more to _ than to _,the firm will increase its profit by increasing the use of labor.