Exam 13: Factor Markets: With Emphasis on the Labor Market

Consider two related labor markets, C and D. Suppose that wages in labor market D fall. Which of the following is the most likely cause of falling wages in labor market D?

The factor demand curve shifts leftward as a result of

A factor price taker is a firm that

For a given firm, marginal factor cost is the same dollar amount no matter what quantity of a factor it purchases. This firm is a

Which of the following statements is false ?

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

"Screening" is the process used by

Exhibit 26-2 ​ Refer to Exhibit 26-2. What factor quantity should the firm purchase?

The elasticity of demand for labor is 2.16. It follows that if the

The additional revenue generated by a firm by hiring one more unit of a factor of production is the

A firm obeys the least-cost rule for factors X and Y by equating

Exhibit 26-1 Refer to Exhibit 26-1. The data show that marginal revenue is __________ price, thus we are dealing with a(n)__________ competitive firm.

The term "derived demand" refers to the idea that a change in the

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

Which of the following is the most likely cause of a shift of the supply of labor curve in labor market A?

The nonmoney benefits a person may receive in a job are sometimes referred to by economists as

Most economists believe that the supply curve of labor in the aggregate is extremely elastic.

The demand for factors (which arises from the demand for the products that the factors help produce)is called a(n)__________ demand.

The market demand curve for labor is the horizontal summation of the firms' demand curves (MRP curves)for labor.

For a factor price taker, the demand for labor curve is horizontal at the going market wage.