Exam 19: Factor Markets and the Distribution of Income

As the _____ of labor used in production increases, ceteris paribus, eventually the _____ will _____.

The importance of human capital has been increased by technological progress.

The value of the marginal product is the:

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print. If the market wage rises to $70:

Use the following to answer questions: -(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. 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 $20 per hour, the profit-maximizing quantity of labor is _____ workers.

In 2012, the median earnings of union members were 25% to 30% higher than the wages of workers not represented by unions.

José, a corn farmer operating in a perfectly competitive market, pays his workers $8 an hour. At his current level of labor use, the marginal product of an additional hour of labor is three bushels of corn. The market price of corn is $2.75. To maximize his profits, Jose should:

If the demand for orange juice increases, the derived demand for orange grove workers will decrease.

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

Which of the following will NOT shift the labor supply curve?

Capital, the factor of production, includes physical capital (such as buildings and machines), human capital (improvement in labor by education and knowledge), and financial capital (such as stock market investments).

Benny employs people to sell candy bars at intersections. The marginal product of the last worker Benny hired is 20 candy bars per hour. Benny pays $7 per worker per hour and sells the candy bars for $1 each. If the price of candy bars rises to $2, then the:

Factors of production are different from inputs in that factors of production:

If a perfectly competitive firm chooses its level of output so that price equals marginal revenue, the value of the marginal product of labor will equal the wage rate.

Employers can sometimes organize to pay lower wages when:

Firms will continue to hire workers as long as:

Human capital is the improvement in _____ produced by _____.

The opportunity cost of an hour of leisure is the hourly wage rate.

Use the following to answer questions: Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. The equilibrium market wage for bricklayers is determined by:

Use the following to answer questions: Figure: Rita's Time Allocation Budget Line -(Figure: Rita's Time Allocation Budget Line) Look at the figure Rita's Time Allocation Budget Line. It is based on 80 hours available for labor and leisure. If her hourly wage doubles, the new time allocation budget line will have a point at _____ hours of leisure and _____ in income.