Exam 19: Factor Markets and the Distribution of Income

Holly and Emily both have a bachelor's degree in nursing from the same college.Both have been nurses for eight years.Holly works from 11 P.M.until 7 A.M. ,and Emily works from 7 A.M.until 3 P.M.Holly's salary is $1,000 per month higher than is Emily's salary.This is an example of an efficiency wage disparity.

(True/False)

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Question 101

Barry's Brewpub is considering hiring more brewmasters.The market wage for a brewmaster is $120 per day.The average brewmaster produces 40 pints of beer per day,but Barry expects the next brewmaster to produce only 20 pints per day.Assuming the market for beer is perfectly competitive,Barry's Brewpub will hire another brewmaster only if:

(Multiple Choice)

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Question 102

Firms that engage in discrimination are usually more profitable than firms that don't discriminate.

(True/False)

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Question 103

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 and the market wage rate is $60 per hour,the profit-maximizing quantity of labor is _____ workers.

(Multiple Choice)

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Question 104

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

(Multiple Choice)

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Question 105

Use the following to answer question: Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.If the price for bricks laid in the wall is $0.10 a brick,the total production of bricks by the first three bricklayers is _____ bricks.

(Multiple Choice)

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Question 106

The equilibrium value of the marginal product of a factor is the additional value produced by the last unit of that factor employed in the factor market as a whole.

(True/False)

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Question 107

In the United States in 2015,approximately 70% of total income,by far the largest share,took the form of:

(Multiple Choice)

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Question 108

When a person receives a wage increase,changes in his or her labor supply depend on:

(Multiple Choice)

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Question 109

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 $250 and the price per bushel of corn is $20.Laura should hire _____ workers to maximize profits.

(Multiple Choice)

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Question 110

A wage _ raises the quantity of labor supplied through a strong _ effect.

(Multiple Choice)

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Question 111

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 $4 and the market wage rate is $120 per hour,the profit-maximizing quantity of labor is _____ workers.

(Multiple Choice)

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Question 112

Use the following to answer question: Figure: Equilibrium in the Labor Market -(Figure: Equilibrium in the Labor Market)Use Figure: Equilibrium in the Labor Market.In the figure,a decrease in population that decreases the number of workers,when everything else stays the same,will lead to a(n)_ in the equilibrium quantity of labor and a(n)_ in the equilibrium price of labor.

(Multiple Choice)

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Question 113

In the U.S.labor market,women of all ethnicities have the highest median earnings of any of the major demographic groups discussed in the chapter.

(True/False)

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Question 114

When a person receives more education,his or her _ has increased.When a firm buys a new copy machine,it has purchased _.

(Multiple Choice)

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Question 115

The amount that an additional unit of a factor adds to a firm's total revenue is called the:

(Multiple Choice)

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Question 116

According to the marginal productivity theory of income distribution,every factor of production is paid _ the equilibrium value of its _ product.

(Multiple Choice)

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Question 117

Sam and Bob have the same educational background.Both have been policemen in Memphis for 10 years.Sam works from 11 P.M.until 7 A.M. ,and Bob works from 7 A.M.until 3 P.M.Sam's salary is $800 per month higher than Bob's salary.This example illustrates a wage disparity due to:

(Multiple Choice)

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Question 118

The equilibrium value of the marginal product of a factor is the additional value produced by the _____ unit of that factor employed in the factor market as a whole.

(Multiple Choice)

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Question 119

Which expression BEST describes the value of the marginal product?

(Multiple Choice)

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Question 120

Showing 101 - 120 of 316

Firms that engage in discrimination are usually more profitable than firms that don't discriminate.

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

Use the following to answer question: Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.If the price for bricks laid in the wall is $0.10 a brick,the total production of bricks by the first three bricklayers is _____ bricks.

The equilibrium value of the marginal product of a factor is the additional value produced by the last unit of that factor employed in the factor market as a whole.

In the United States in 2015,approximately 70% of total income,by far the largest share,took the form of:

When a person receives a wage increase,changes in his or her labor supply depend on:

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 $250 and the price per bushel of corn is $20.Laura should hire _____ workers to maximize profits.

A wage _ raises the quantity of labor supplied through a strong _ effect.

In the U.S.labor market,women of all ethnicities have the highest median earnings of any of the major demographic groups discussed in the chapter.

When a person receives more education,his or her _ has increased.When a firm buys a new copy machine,it has purchased _.

The amount that an additional unit of a factor adds to a firm's total revenue is called the:

According to the marginal productivity theory of income distribution,every factor of production is paid _ the equilibrium value of its _ product.

Sam and Bob have the same educational background.Both have been policemen in Memphis for 10 years.Sam works from 11 P.M.until 7 A.M. ,and Bob works from 7 A.M.until 3 P.M.Sam's salary is $800 per month higher than Bob's salary.This example illustrates a wage disparity due to:

The equilibrium value of the marginal product of a factor is the additional value produced by the _____ unit of that factor employed in the factor market as a whole.

Which expression BEST describes the value of the marginal product?

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

Firms that engage in discrimination are usually more profitable than firms that don't discriminate.

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

Use the following to answer question: Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.If the price for bricks laid in the wall is $0.10 a brick,the total production of bricks by the first three bricklayers is _____ bricks.

The equilibrium value of the marginal product of a factor is the additional value produced by the last unit of that factor employed in the factor market as a whole.

In the United States in 2015,approximately 70% of total income,by far the largest share,took the form of:

When a person receives a wage increase,changes in his or her labor supply depend on:

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 $250 and the price per bushel of corn is $20.Laura should hire _____ workers to maximize profits.

A wage _____ raises the quantity of labor supplied through a strong _____ effect.

In the U.S.labor market,women of all ethnicities have the highest median earnings of any of the major demographic groups discussed in the chapter.

When a person receives more education,his or her _____ has increased.When a firm buys a new copy machine,it has purchased _____.

The amount that an additional unit of a factor adds to a firm's total revenue is called the:

According to the marginal productivity theory of income distribution,every factor of production is paid _____ the equilibrium value of its _____ product.

Sam and Bob have the same educational background.Both have been policemen in Memphis for 10 years.Sam works from 11 P.M.until 7 A.M. ,and Bob works from 7 A.M.until 3 P.M.Sam's salary is $800 per month higher than Bob's salary.This example illustrates a wage disparity due to:

The equilibrium value of the marginal product of a factor is the additional value produced by the _____ unit of that factor employed in the factor market as a whole.

Which expression BEST describes the value of the marginal product?

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

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

A wage _ raises the quantity of labor supplied through a strong _ effect.

When a person receives more education,his or her _ has increased.When a firm buys a new copy machine,it has purchased _.

According to the marginal productivity theory of income distribution,every factor of production is paid _ the equilibrium value of its _ product.