Exam 26: Factor Markets With Emphasis on the Labor Market

For wage rates to be the same in various labor markets, four conditions must exist: (1) demand for every type of labor must be __________; (2) no special __________ aspects to any job; (3) all labor is ultimately __________ and can __________ be trained for different types of employment; and (4) all labor is mobile at __________.

An increase in the demand for a good will lead to a

If the wage rate increases from $15 to $17 and, as a result, the quantity demanded of labor decreases from 700 workers to 650 workers, then the absolute value of the elasticity of demand for labor is

Situation 26-1 -Refer to Situation 26-1. The output produced per $1 of cost in Mexico is

Marginal productivity theory implies that a worker will be paid an amount

The wage rate increases 8 percent, and the quantity demanded of labor falls by 14 percent. The absolute value of the elasticity of demand for labor is

The addition to total cost that results from employing one additional unit of a resource is called

Which of the following statements is true?

Exhibit 26-5 ​ -Refer to Exhibit 26-5. The marginal revenue product of the fifth unit of labor is

Which of the following statements is true?

The least-cost rule states that a firm minimizes costs by buying factors in the combination at which the MRP-to-price ratio for each is the same.

What is the relationship between the elasticity of demand for a product and the elasticity of demand for labor (that is used in producing the product)?

Exhibit 26-5 ​ -Refer to Exhibit 26-5. The value of marginal product (VMP) of the third unit of labor equals

The factor demand curve shifts leftward as a result of

The market supply curve of labor

For a factor price taker, the factor supply curve is __________, whereas the market factor supply curve is __________.

Suppose a factor price taker purchases one unit of factor X for $10. At what price would it purchase the second unit, and what would marginal factor cost (MFC) equal?

Assume the following conditions hold: (1) the demand for every type of labor is the same, (2) there are no special nonpecuniary aspects to any job, (3) all labor is ultimately homogeneous and can costlessly be trained for different types of employment, (4) all labor is mobile at zero cost. Given these conditions,

If MRP = VMP = MFC = wages, then the firm is

A firm's factor demand curve is also its _______________________ curve.