Exam 19: Factor Markets and the Distribution of Income

The equilibrium value of the marginal product of a factor is the additional value produced by the most productive unit of that factor employed in the factor market as a whole.

(True/False)

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Question 81

Use the following to answer questions: Figure: The Time Allocation Budget Line -(Figure: The Time Allocation Budget Line) Look at the figure The Time Allocation Budget Line. If the wage rate rises, then the time allocation budget line will rotate _ along the _ axis.

(Multiple Choice)

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Question 82

Which of the following best describes the value of the marginal product?

(Multiple Choice)

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Question 83

Manufactured resources such as equipment, buildings, and tools are also known as:

(Multiple Choice)

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Question 84

Actual wage differentials can be partially explained by:

(Multiple Choice)

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Question 85

Which of the following statements is TRUE?

(Multiple Choice)

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Question 86

Holly and Emily both have a bachelor's degree in nursing from the same college. Both have been nurses for eight years. Holly works from 11 P.M. until 7 A.M., and Emily works from 7 A.M. until 3 P.M. Holly's salary is $1,000 per month higher than Emily's salary. This is an example of an efficiency wage disparity.

(True/False)

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Question 87

Use the following to answer questions: -(Table: Total Product of Labor at Debbie's Bakery) Look at the table Total Product of Labor at Debbie's Bakery. Debbie can sell cakes at $8 each. Debbie must pay each worker $45 per day. How many workers will she hire to maximize profit?

(Multiple Choice)

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Question 88

According to the marginal productivity theory of income distribution, if a unit of labor is paid more than a unit of capital, it is because at the equilibrium quantity of each factor, the value of the marginal product of labor is equal to the value of the marginal product of capital.

(True/False)

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Question 89

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 $4 and the market wage rate is $80 per hour, the profit-maximizing quantity of labor is _____ worker(s).

(Multiple Choice)

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Question 90

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. The price of a power cord is $2, the market wage rate is $40 per hour, and four workers are hired. Profit can be maximized by hiring _____ worker(s).

(Multiple Choice)

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Question 91

Which of the following is an example of wage disparity due to compensating differentials?

(Multiple Choice)

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Question 92

Use the following to answer questions: 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. Holding everything else constant, if the demand for this firm's product decreases:

(Multiple Choice)

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Question 93

Oscar's Flower Shop maximizes profits by hiring four workers in a perfectly competitive labor market. The workers and their value of the marginal product of labor are Noe, $40; Barbara, $35; Calvin, $27; and Diana, $15. According to the marginal productivity theory of income distribution, which of the following statements is TRUE?

(Multiple Choice)

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Question 94

Use the following to answer questions: 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 a possible equilibrium wage rate in the labor market?

(Multiple Choice)

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Question 95

In 2012, fewer than 10% of the employees of private businesses were represented by unions.

(True/False)

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Question 96

Which of the following is most likely an example of wage disparity due to differences in talent and ability?

(Multiple Choice)

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Question 97

The marginal productivity theory of income distribution assumes that factor markets are perfectly competitive.

(True/False)

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Question 98

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 wage rate is $90 per hour, the profit-maximizing quantity of labor is _____ workers.

(Multiple Choice)

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Question 99

If a firm hires labor such that W > VMPL, then profit:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 369

The equilibrium value of the marginal product of a factor is the additional value produced by the most productive unit of that factor employed in the factor market as a whole.

Use the following to answer questions: Figure: The Time Allocation Budget Line -(Figure: The Time Allocation Budget Line) Look at the figure The Time Allocation Budget Line. If the wage rate rises, then the time allocation budget line will rotate _ along the _ axis.

Which of the following best describes the value of the marginal product?

Manufactured resources such as equipment, buildings, and tools are also known as:

Actual wage differentials can be partially explained by:

Which of the following statements is TRUE?

Use the following to answer questions: -(Table: Total Product of Labor at Debbie's Bakery) Look at the table Total Product of Labor at Debbie's Bakery. Debbie can sell cakes at $8 each. Debbie must pay each worker $45 per day. How many workers will she hire to maximize profit?

According to the marginal productivity theory of income distribution, if a unit of labor is paid more than a unit of capital, it is because at the equilibrium quantity of each factor, the value of the marginal product of labor is equal to the value of the marginal product of capital.

Which of the following is an example of wage disparity due to compensating differentials?

In 2012, fewer than 10% of the employees of private businesses were represented by unions.

Which of the following is most likely an example of wage disparity due to differences in talent and ability?

The marginal productivity theory of income distribution assumes that factor markets are perfectly competitive.

If a firm hires labor such that W > VMPL, then profit:

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals 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 Common Resources

The Economics of the Welfare

Uncertainty, Risk, and Private Information

Filters

Exam 19: Factor Markets and the Distribution of Income

The equilibrium value of the marginal product of a factor is the additional value produced by the most productive unit of that factor employed in the factor market as a whole.

Use the following to answer questions: Figure: The Time Allocation Budget Line -(Figure: The Time Allocation Budget Line) Look at the figure The Time Allocation Budget Line. If the wage rate rises, then the time allocation budget line will rotate _____ along the _____ axis.

Which of the following best describes the value of the marginal product?

Manufactured resources such as equipment, buildings, and tools are also known as:

Actual wage differentials can be partially explained by:

Which of the following statements is TRUE?

Use the following to answer questions: -(Table: Total Product of Labor at Debbie's Bakery) Look at the table Total Product of Labor at Debbie's Bakery. Debbie can sell cakes at $8 each. Debbie must pay each worker $45 per day. How many workers will she hire to maximize profit?

According to the marginal productivity theory of income distribution, if a unit of labor is paid more than a unit of capital, it is because at the equilibrium quantity of each factor, the value of the marginal product of labor is equal to the value of the marginal product of capital.

Which of the following is an example of wage disparity due to compensating differentials?

In 2012, fewer than 10% of the employees of private businesses were represented by unions.

Which of the following is most likely an example of wage disparity due to differences in talent and ability?

The marginal productivity theory of income distribution assumes that factor markets are perfectly competitive.

If a firm hires labor such that W > VMPL, then profit:

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals 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 Common Resources

The Economics of the Welfare

Uncertainty, Risk, and Private Information

Filters

Use the following to answer questions: Figure: The Time Allocation Budget Line -(Figure: The Time Allocation Budget Line) Look at the figure The Time Allocation Budget Line. If the wage rate rises, then the time allocation budget line will rotate _ along the _ axis.