Exam 26: Factor Markets With Emphasis on the Labor Market

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As a firm buys more capital and less labor, the marginal physical product of capital and the marginal physical product of labor , assuming the law of diminishing marginal returns has set in for each factor.

(Multiple Choice)

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Question 41

Suppose that all the necessary conditions exist for the realization of equal wage rates in every labor market, but that currently the wage rate in market X is higher than the wage rate in market Y. We expect that eventually the wage rate

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Question 42

For a given labor market, an increase in the MPP of labor will shift the demand curve for labor rightward.

(True/False)

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Question 43

Which of the following can bring about an increase in the demand for labor?

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Question 44

Marginal factor cost (MFC) is

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Question 45

A decrease in the wage rate

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Question 46

Suppose there are two labor markets, A and B, and labor is homogeneous between markets. The wage rate in labor market A falls relative to the wage rate in labor market B. What happens in labor market B?

(Multiple Choice)

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Question 47

Employers use screening mechanisms, such as GPA, because they lack complete information about job applicants.

(True/False)

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Question 48

A product price searcher (monopolist, oligopolist, or monopolistic competitive firm) will maximize its profits by hiring factors up to the point at which

(Multiple Choice)

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Question 49

Which of the following statements is false?

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Question 50

Which of the following statements is true?

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Question 51

Situation 26-2 A company is trying to decide whether it should produce good Y in the U.S. or in Mexico. Suppose a U.S. worker earns $12 per hour and a worker in Mexico earns $4 per hour. Also suppose that the marginal physical product (MPP) of the U.S. worker is 10 units of good Y and the MPP of the Mexican worker is 5 units of good Y. -Refer to Situation 26-2. The output produced per $1 of cost in the U.S. is

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Question 52

"Screening" is the process used by

(Multiple Choice)

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Question 53

Exhibit 26-4 -Refer to Exhibit 26-4. In evaluating the marginal cost and revenue of hiring additional units of labor, the firm will not hire

(Multiple Choice)

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Question 54

Consider two labor markets, A and B. Wages in labor market A rise. This could be due to

(Multiple Choice)

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Question 55

If MPP_X/P_X > MPP_Y/P_Y, the firm should buy

(Multiple Choice)

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Question 56

If the demand for a product that labor produces is highly elastic, a small percentage increase in price will quantity demanded of the product by a relatively percentage, which, in turn, will __ the demand for the labor that produces the product.

(Multiple Choice)

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Question 57

Exhibit 26-5 -Refer to Exhibit 26-5. The data illustrate that the firm in question is a

(Multiple Choice)

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Question 58

Exhibit 26-4 -Refer to Exhibit 26-4. The marginal factor cost of labor

(Multiple Choice)

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Question 59

Exhibit 26-1 -Refer to Exhibit 26-1. For this firm, the demand curve for factor X is

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Question 60

Showing 41 - 60 of 184

Exam 26: Factor Markets With Emphasis on the Labor Market

As a firm buys more capital and less labor, the marginal physical product of capital __________ and the marginal physical product of labor __________, assuming the law of diminishing marginal returns has set in for each factor.

Suppose that all the necessary conditions exist for the realization of equal wage rates in every labor market, but that currently the wage rate in market X is higher than the wage rate in market Y. We expect that eventually the wage rate

For a given labor market, an increase in the MPP of labor will shift the demand curve for labor rightward.

Which of the following can bring about an increase in the demand for labor?

Marginal factor cost (MFC) is

A decrease in the wage rate

Suppose there are two labor markets, A and B, and labor is homogeneous between markets. The wage rate in labor market A falls relative to the wage rate in labor market B. What happens in labor market B?

Employers use screening mechanisms, such as GPA, because they lack complete information about job applicants.

A product price searcher (monopolist, oligopolist, or monopolistic competitive firm) will maximize its profits by hiring factors up to the point at which

Which of the following statements is false?

Which of the following statements is true?

"Screening" is the process used by

Exhibit 26-4 ​ -Refer to Exhibit 26-4. In evaluating the marginal cost and revenue of hiring additional units of labor, the firm will not hire

Consider two labor markets, A and B. Wages in labor market A rise. This could be due to

If MPPX/PX > MPPY/PY, the firm should buy

If the demand for a product that labor produces is highly elastic, a small percentage increase in price will __________ quantity demanded of the product by a relatively __________ percentage, which, in turn, will __________ the demand for the labor that produces the product.

Exhibit 26-5 ​ -Refer to Exhibit 26-5. The data illustrate that the firm in question is a

Exhibit 26-4 ​ -Refer to Exhibit 26-4. The marginal factor cost of labor

Exhibit 26-1 ​ -Refer to Exhibit 26-1. For this firm, the demand curve for factor X is

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As a firm buys more capital and less labor, the marginal physical product of capital and the marginal physical product of labor , assuming the law of diminishing marginal returns has set in for each factor.

Exhibit 26-4 -Refer to Exhibit 26-4. In evaluating the marginal cost and revenue of hiring additional units of labor, the firm will not hire

If MPP_X/P_X > MPP_Y/P_Y, the firm should buy

If the demand for a product that labor produces is highly elastic, a small percentage increase in price will quantity demanded of the product by a relatively percentage, which, in turn, will __ the demand for the labor that produces the product.

Exhibit 26-5 -Refer to Exhibit 26-5. The data illustrate that the firm in question is a

Exhibit 26-4 -Refer to Exhibit 26-4. The marginal factor cost of labor

Exhibit 26-1 -Refer to Exhibit 26-1. For this firm, the demand curve for factor X is