Exam 19: Factor Markets and the Distribution of Income

Figure: Equilibrium in the Labor Market (Figure: Equilibrium in the Labor Market) In the figure Equilibrium in the Labor Market, 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 101

In terms of labor supply, the substitution effect of a higher wage causes which of the following?

(Multiple Choice)

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Question 102

Scenario: The Decision to Hire Labor Assume that both the product market and the labor market are perfectly competitive.The price of this firm's product is $5.The firm's total product with respect to labor is given in the table that follows. (Scenario: The Decision to Hire Labor) Look at the scenario The Decision to Hire Labor.How many workers will this perfectly competitive, profit-maximizing firm choose to hire if the equilibrium wage is $30?

(Multiple Choice)

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Question 103

Actual wage differentials can be partially explained by which of the following?

(Multiple Choice)

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Question 104

The firm's value of marginal product curve:

(Multiple Choice)

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Question 105

Which of the following statements is true?

(Multiple Choice)

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Question 106

(Table: Value of the Marginal Product of Labor and Demand) In the figure Value of the Marginal Product of Labor and Demand, the total product of labor is shown for the hourly production of power cords.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 107

As the ______ of labor used in production increases, ceteris paribus, eventually the _ ___ will _.

(Multiple Choice)

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Question 108

A backward-bending supply curve of labor shows that at relatively low wages the:

(Multiple Choice)

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Question 109

Suppose 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 110

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 111

Eric is a professor who is paid an annual salary to teach at a local college.Suppose Eric receives a promotion and an increase in his annual salary.Eric's labor supply curve will be:

(Multiple Choice)

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Question 112

The trade-off between work and leisure underlying the supply of labor involves the substitution effect and the:

(Multiple Choice)

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Question 113

(Table: Value of the Marginal Product of Labor and Demand) In the figure Value of the Marginal Product of Labor and Demand, the total product of labor is shown for the hourly production of power cords.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 114

Scott's wage is $25 per hour and he works 50 hours a week, which is his optimal labor supply.At his optimal labor supply, his marginal utility of one hour of leisure is equal to:

(Multiple Choice)

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Question 115

A firm's demand curve for labor is:

(Multiple Choice)

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Question 116

(Table: Total Product of Labor at Debbie's Bakery) Debbie owns a bakery and can hire workers to produce cakes selling in a competitive output market at $10 each.The table Total Product of Labor at Debbie's Bakery shows the relation between the number of workers and the number of cakes produced.If Debbie must pay each worker a competitive market wage of $40 per day, how many workers will she hire to maximize profit?

(Multiple Choice)

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Question 117

Barry's Brewpub is considering hiring more brew masters (it already employs several).The current market wage for a brew master is $120.The average brew master produces 40 pints of beer per day, but Barry expects the next brew master hired to produce only 20 pints per day.Barry's Brewpub will hire another brew master only if:

(Multiple Choice)

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Question 118

Scenario: The Decision to Hire Labor Assume that both the product market and the labor market are perfectly competitive.The price of this firm's product is $5.The firm's total product with respect to labor is given in the table that follows. (Scenario: The Decision to Hire Labor) Look at the scenario The Decision to Hire Labor.If this profit-maximizing firm hires two workers, what is the equilibrium wage rate in the labor market?

(Multiple Choice)

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Question 119

Barry's Brewpub is considering hiring more brew masters (it already employs several).A pint of brew sells for $3.The market wage of a brew master is $150 per day.Barry's Brewpub will hire another brew master only if Barry believes the new brew master will:

(Multiple Choice)

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Question 120

Showing 101 - 120 of 241

In terms of labor supply, the substitution effect of a higher wage causes which of the following?

Actual wage differentials can be partially explained by which of the following?

The firm's value of marginal product curve:

Which of the following statements is true?

As the ______ of labor used in production increases, ceteris paribus, eventually the _ ___ will _.

A backward-bending supply curve of labor shows that at relatively low wages the:

Suppose 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 _.

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

Eric is a professor who is paid an annual salary to teach at a local college.Suppose Eric receives a promotion and an increase in his annual salary.Eric's labor supply curve will be:

The trade-off between work and leisure underlying the supply of labor involves the substitution effect and the:

Scott's wage is $25 per hour and he works 50 hours a week, which is his optimal labor supply.At his optimal labor supply, his marginal utility of one hour of leisure is equal to:

A firm's demand curve for labor is:

Barry's Brewpub is considering hiring more brew masters (it already employs several).A pint of brew sells for $3.The market wage of a brew master is $150 per day.Barry's Brewpub will hire another brew master only if Barry believes the new brew master will:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Consumer and Producer Surplus

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

Filters

Exam 19: Factor Markets and the Distribution of Income

In terms of labor supply, the substitution effect of a higher wage causes which of the following?

Actual wage differentials can be partially explained by which of the following?

The firm's value of marginal product curve:

Which of the following statements is true?

As the ________ of labor used in production increases, ceteris paribus, eventually the ___ ___ will _.

A backward-bending supply curve of labor shows that at relatively low wages the:

Suppose 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 _.

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

Eric is a professor who is paid an annual salary to teach at a local college.Suppose Eric receives a promotion and an increase in his annual salary.Eric's labor supply curve will be:

The trade-off between work and leisure underlying the supply of labor involves the substitution effect and the:

Scott's wage is $25 per hour and he works 50 hours a week, which is his optimal labor supply.At his optimal labor supply, his marginal utility of one hour of leisure is equal to:

A firm's demand curve for labor is:

Barry's Brewpub is considering hiring more brew masters (it already employs several).A pint of brew sells for $3.The market wage of a brew master is $150 per day.Barry's Brewpub will hire another brew master only if Barry believes the new brew master will:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Consumer and Producer Surplus

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

Filters

As the ______ of labor used in production increases, ceteris paribus, eventually the _ ___ will _.