Question 1

Beth is deciding whether to pick up more hours at work or to take a vacation.This decision best describes:

Accepted Answer

A) her hours decision. 
B) her labor force participation decision. 
C) the value she places on income. 
D) the labor-leisure trade-off. 
E) the necessity of income. 
A) her hours decision. 
B) her labor force participation decision. 
C) the value she places on income. 
D) the labor-leisure trade-off. 
E) the necessity of income.

Question 2

Use the accompanying table,which shows the supply and demand schedules for workings in the country of Hovian,to answer the questions that follow.
  
-Wages above __________ will cause a __________.

Accepted Answer

A) $10; surplus 
B) $50; shortage 
C) $20; surplus 
D) $30; shortage 
E) $40; shortage 
A) $10; surplus 
B) $50; shortage 
C) $20; surplus 
D) $30; shortage 
E) $40; shortage

Question 3

The accompanying graph represents Zendar's labor market.Use this graph to answer the questions that follow.
  
-What is the equilibrium number of workers in Zendar?

Accepted Answer

A) 20 
B) 25 
C) 30 
D) 35 
E) 40 
A) 20 
B) 25 
C) 30 
D) 35 
E) 40

Question 4

Factors of production are:

Accepted Answer

A) goods and services. 
B) used to make goods and services. 
C) purchased by the consumer for personal use. 
D) sold by the consumer for income. 
E) the property of firms. 
A) goods and services. 
B) used to make goods and services. 
C) purchased by the consumer for personal use. 
D) sold by the consumer for income. 
E) the property of firms.

Question 5

The area underneath a firm's labor demand curve and above the market wage is the graphical representation of the firm's:

Accepted Answer

A) revenues. 
B) costs. 
C) profits. 
D) losses. 
E) hiring decisions. 
A) revenues. 
B) costs. 
C) profits. 
D) losses. 
E) hiring decisions.

Question 6

Companies begin to find that customers,when calling customer service,want to talk to real people rather than to a recording.What will happen to demand for receptionists and the market equilibrium wage?

Accepted Answer

A) Demand will fall; the equilibrium wage will fall. 
B) Demand will increase; the equilibrium wage will fall. 
C) Demand will stay the same; the equilibrium wage will rise. 
D) Demand will decrease; the equilibrium wage will rise. 
E) Demand will increase; the equilibrium wage will increase. 
A) Demand will fall; the equilibrium wage will fall. 
B) Demand will increase; the equilibrium wage will fall. 
C) Demand will stay the same; the equilibrium wage will rise. 
D) Demand will decrease; the equilibrium wage will rise. 
E) Demand will increase; the equilibrium wage will increase.

Question 7

It is profitable for a Jack's Jingles to use more equipment in the production of its songs when the:

Accepted Answer

A) rental price of land decreases. 
B) rental price of capital increases. 
C) wages of workers falls. 
D) rental price of capital decreases. 
E) marginal product of labor falls. 
A) rental price of land decreases. 
B) rental price of capital increases. 
C) wages of workers falls. 
D) rental price of capital decreases. 
E) marginal product of labor falls.

Question 8

There will be a __________ of workers when the wage is __________ the equilibrium wage.

Accepted Answer

A) surplus; at 
B) shortage; below 
C) shortage; above 
D) shortage; at 
E) surplus; below 
A) surplus; at 
B) shortage; below 
C) shortage; above 
D) shortage; at 
E) surplus; below

Question 9

Labor supply is the relationship between __________.

Accepted Answer

A) wages and willingness to hire workers 
B) price of output and amount of output for sale 
C) price of capital and amount of capital for sale 
D) wages and willingness to work 
E) wages and amount of output for sale 
A) wages and willingness to hire workers 
B) price of output and amount of output for sale 
C) price of capital and amount of capital for sale 
D) wages and willingness to work 
E) wages and amount of output for sale

Question 10

There will be a surplus of __________ workers at a wage of __________.

Accepted Answer

A) 75; $10 
B) 100; $20 
C) 135; $40 
D) 40; $40 
E) 50; $30 
A) 75; $10 
B) 100; $20 
C) 135; $40 
D) 40; $40 
E) 50; $30

Question 11

A formerly quiet town with fantastic weather becomes "the place" to live for people from colder climates.We can expect the rental price of land to __________ land to be devoted to housing.

Accepted Answer

A) decrease and more 
B) increase and less 
C) increase and more 
D) decrease and the same amount of 
E) increase and the same amount of 
A) decrease and more 
B) increase and less 
C) increase and more 
D) decrease and the same amount of 
E) increase and the same amount of

Question 12

The income effect describes the:

Accepted Answer

A) incentive to change jobs. 
B) decision whether to join the labor force. 
C) decision to ask for a raise. 
D) incentive to work more when the wage rises. 
E) incentive to work less when the wage rises. 
A) incentive to change jobs. 
B) decision whether to join the labor force. 
C) decision to ask for a raise. 
D) incentive to work more when the wage rises. 
E) incentive to work less when the wage rises.

Question 13

You and your friend get into an argument when she finds out that you earn more than she does.She says it isn't fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

Accepted Answer

Students should refer to the supply and

Question 14

The labor supply curve is given by the equation LS = 3W + 20 and the labor demand curve is given by the equation LD = 80 - 2W.If the wage is $20,there will be a __________ of __________ workers.

Accepted Answer

A) surplus; 80 
B) shortage; 40 
C) shortage; 80 
D) surplus; 40 
E) surplus; 20 
A) surplus; 80 
B) shortage; 40 
C) shortage; 80 
D) surplus; 40 
E) surplus; 20

Question 15

Bobby knows that she is producing a value just equal to her wage.If the price of what she makes falls,Bobby knows that she:

Accepted Answer

A) will be able to keep her job. 
B) is likely to work overtime. 
C) will work less. 
D) is likely to be fired. 
E) will not be able to find work anywhere. 
A) will be able to keep her job. 
B) is likely to work overtime. 
C) will work less. 
D) is likely to be fired. 
E) will not be able to find work anywhere.

Question 16

Use the following information to answer the questions that follow.
Nicky L,owner of NLD Incorporated,knows that the marginal product of labor (MPL)for his workers can be defined as follows:
MPL = 32 - L
The total output a given level of workers can produce is found as:
Q = 32L - LS1U1P12S1S1P0
He also knows that the price of his output is $3.His profits can be found as:
Profit = P
   Q - W
   L
-What additional amount of output does the thirtieth worker contribute?

Accepted Answer

A) 150 units 
B) 60 units 
C) 2 units 
D) 14 units 
E) 9 units 
A) 150 units 
B) 60 units 
C) 2 units 
D) 14 units 
E) 9 units

Question 17

Assume that the Vian Company is renting capital and hiring labor such that the bang per buck from each resource is the same.If wages of labor increase,its use of labor __________ and capital __________.

Accepted Answer

A) increases; falls 
B) falls; falls 
C) increases; increases 
D) stays the same; falls 
E) falls; increases 
A) increases; falls 
B) falls; falls 
C) increases; increases 
D) stays the same; falls 
E) falls; increases

Question 18

When Jane earns more income but still works less,leisure is a __________ good for Jane.

Accepted Answer

A) substitute 
B) complement 
C) luxury 
D) necessity 
E) normal 
A) substitute 
B) complement 
C) luxury 
D) necessity 
E) normal

Question 19

In the distant future,companies will be using technology that can replicate food.What will happen to the equilibrium wage and quantity of cooks?

Accepted Answer

A) The wage will rise and the number of cooks employed will rise. 
B) Both will remain unchanged. 
C) The wage will stay the same,but many cooks will leave the market. 
D) The wage will rise,and the number of cooks employed will fall. 
E) The wage and quantity demand will both decrease because firms won't hire as many cooks. 
A) The wage will rise and the number of cooks employed will rise. 
B) Both will remain unchanged. 
C) The wage will stay the same,but many cooks will leave the market. 
D) The wage will rise,and the number of cooks employed will fall. 
E) The wage and quantity demand will both decrease because firms won't hire as many cooks.

Question 20

The rental price of land is the:

Accepted Answer

A) cost of leasing a piece of land for a determined time period. 
B) amount of money required to buy a piece of land. 
C) entire bill associated with maintaining land used in production. 
D) amount of money a firm could have made by using the land for another purpose. 
E) amount of money a firm pays to build a plant on a piece of land. 
A) cost of leasing a piece of land for a determined time period. 
B) amount of money required to buy a piece of land. 
C) entire bill associated with maintaining land used in production. 
D) amount of money a firm could have made by using the land for another purpose. 
E) amount of money a firm pays to build a plant on a piece of land.

Beth is deciding whether to pick up more hours at work or to take a vacation.This decision best describes:

Use the accompanying table,which shows the supply and demand schedules for workings in the country of Hovian,to answer the questions that follow. -Wages above will cause a .

The accompanying graph represents Zendar's labor market.Use this graph to answer the questions that follow. -What is the equilibrium number of workers in Zendar?

Factors of production are:

The area underneath a firm's labor demand curve and above the market wage is the graphical representation of the firm's:

Companies begin to find that customers,when calling customer service,want to talk to real people rather than to a recording.What will happen to demand for receptionists and the market equilibrium wage?

It is profitable for a Jack's Jingles to use more equipment in the production of its songs when the:

There will be a of workers when the wage is the equilibrium wage.

Labor supply is the relationship between __________.

There will be a surplus of workers at a wage of .

A formerly quiet town with fantastic weather becomes "the place" to live for people from colder climates.We can expect the rental price of land to __________ land to be devoted to housing.

The income effect describes the:

You and your friend get into an argument when she finds out that you earn more than she does.She says it isn't fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

The labor supply curve is given by the equation L_S = 3W + 20 and the labor demand curve is given by the equation L_D = 80 - 2W.If the wage is $20,there will be a of workers.

Bobby knows that she is producing a value just equal to her wage.If the price of what she makes falls,Bobby knows that she:

Assume that the Vian Company is renting capital and hiring labor such that the bang per buck from each resource is the same.If wages of labor increase,its use of labor and capital .

When Jane earns more income but still works less,leisure is a __________ good for Jane.

In the distant future,companies will be using technology that can replicate food.What will happen to the equilibrium wage and quantity of cooks?

The rental price of land is the:

The Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Elasticity

Price Controls

The Efficiency of Markets and the Costs of Taxation

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

Filters

Exam 14: The Demand and Supply of Resources

Beth is deciding whether to pick up more hours at work or to take a vacation.This decision best describes:

Use the accompanying table,which shows the supply and demand schedules for workings in the country of Hovian,to answer the questions that follow. -Wages above __________ will cause a __________.

The accompanying graph represents Zendar's labor market.Use this graph to answer the questions that follow. -What is the equilibrium number of workers in Zendar?

Factors of production are:

The area underneath a firm's labor demand curve and above the market wage is the graphical representation of the firm's:

Companies begin to find that customers,when calling customer service,want to talk to real people rather than to a recording.What will happen to demand for receptionists and the market equilibrium wage?

It is profitable for a Jack's Jingles to use more equipment in the production of its songs when the:

There will be a __________ of workers when the wage is __________ the equilibrium wage.

Labor supply is the relationship between __________.

There will be a surplus of __________ workers at a wage of __________.

A formerly quiet town with fantastic weather becomes "the place" to live for people from colder climates.We can expect the rental price of land to __________ land to be devoted to housing.

The income effect describes the:

You and your friend get into an argument when she finds out that you earn more than she does.She says it isn't fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

The labor supply curve is given by the equation LS = 3W + 20 and the labor demand curve is given by the equation LD = 80 - 2W.If the wage is $20,there will be a __________ of __________ workers.

Bobby knows that she is producing a value just equal to her wage.If the price of what she makes falls,Bobby knows that she:

Assume that the Vian Company is renting capital and hiring labor such that the bang per buck from each resource is the same.If wages of labor increase,its use of labor __________ and capital __________.

When Jane earns more income but still works less,leisure is a __________ good for Jane.

In the distant future,companies will be using technology that can replicate food.What will happen to the equilibrium wage and quantity of cooks?

The rental price of land is the:

The Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Elasticity

Price Controls

The Efficiency of Markets and the Costs of Taxation

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

Filters

Use the accompanying table,which shows the supply and demand schedules for workings in the country of Hovian,to answer the questions that follow. -Wages above will cause a .

There will be a of workers when the wage is the equilibrium wage.

There will be a surplus of workers at a wage of .

The labor supply curve is given by the equation L_S = 3W + 20 and the labor demand curve is given by the equation L_D = 80 - 2W.If the wage is $20,there will be a of workers.

Assume that the Vian Company is renting capital and hiring labor such that the bang per buck from each resource is the same.If wages of labor increase,its use of labor and capital .