Exam 11: Markets for Factors of Production

Marnie works at the guest check-in desk during nights at the Hilton Hotel in Portland,OR.She has the ability to determine how many hours she works each week.The hotel grants Marnie an increase in her hourly wage from $14 per hour to $20 per hour.How will Marnie respond? Explain your answer.

The following figure depicts the labor markets of two different firms. -Refer to the figure above.Let the price of A's output be PA and the price of B's output be PB.If firm A hires 8 employees at a wage of $12 and firm B hires 2 employees at a wage of $18,what is the ratio PA/PB?

A college graduate getting paid more than a high school graduate is due to ________.

Other things remaining the same,which of the following is likely to happen if the price of flour products decreases?

The following figure shows the production function for a perfectly competitive firm. -Refer to the figure above.Which of the following statements is true?

In Major League Baseball,a player's WAR (wins above replacement)is a rough measure of the player's marginal product of labor.Specifically,WAR measures how many additional wins a player's performance would register for the team above the performance of the average player at his position.For 2015,center fielder Mike Trout of the Los Angeles Angels had a war of 7.55.(Assume that Trout's performance in 2016 is expected to be exactly the same as in 2015.)Suppose an additional win is worth $1.7 million to the Angels in 2016.What is Trout's value of marginal product of labor in 2016? Explain your answer.

The following table shows the output of chairs produced by a firm at different units of capital rented. The price per chair is $10. -Refer to the table above.When does diminishing marginal returns to capital set in?

A firm should consume physical capital until the value of the ________.

Which of the following statements correctly identifies a difference between labor and capital?

Scenario: Consider a firm that produces and sells a good for the price of $2 in a perfectly competitive market. The following table shows the relationship between the number of workers and the output of this firm. Suppose the labor market from which this firm hires its employees is competitive. -Refer to the scenario above.The marginal product of labor for this firm is ________.

The following figure depicts a specific firm's production with respect to the number of machine used. -Refer to Goldin and Rouse's study of auditions at national orchestras reported in the Evidence-Based Economics segment in the textbook.What is the evidence for discrimination in national orchestras presented in the study of audition data?

Which of the following is true of the wage gap between the top 10 percent of earners and the bottom 10 percent of earners in the U.S.economy?

The following table shows the number of machines used and the daily output of a firm manufacturing notebooks. a)Calculate the marginal product of capital at different levels of employment.If the market price of each notebook is $3,calculate the value of the marginal product of capital. b)How many machines should the firm rent if the rental price of each machine is $12 per day? How many machines should the firm rent if the rental price increases to $30 per day?

The following table shows the demand and supply of labor in an industry.The equilibrium employment in this market is ________ hours per week and those workers are paid ________ per hour.

Without any change in the demand for labor,how are the following events likely to change the equilibrium wage and employment level in a dairy farm? a)An increase in the population of the region where the dairy farm is located b)The establishment of a cotton mill that pays higher hourly wages and is located near the dairy farm c)The shutdown of a rice farm located near the dairy farm

If the value of the marginal product of physical capital is $20 and the value of the marginal product of labor is $5,the highest price that a firm should pay for an additional unit of physical capital is ________.

Which of the following statements is true?

Given that the market wage rate is $50 and both the labor and the goods market are perfectly competitive,a profit-maximizing firm should hire an additional worker if ________.

Which of the following correctly identifies the characteristics of land and capital?

If there is a decrease in the price of the final good that an industry produces,the labor demand curve for the industry is likely to ________.