Exam 12: The Supply of and Demand for Productive Resources

Consider the labor market for nurses, which initially is in equilibrium. Suppose the output price for nursing services increases. Holding all else equal, what effect will this have on the labor market for nurses?

When the price of a resource is set below equilibrium,

A profit-maximizing farmer will apply additional units of fertilizer until the marginal revenue product (MRP) of fertilizer is half the MRP of skilled labor when a unit of fertilizer

If a profit-maximizing firm hires an additional unit of labor, what must be true about labor's wage and marginal revenue product?

Which of the following is the best example of an investment in human capital?

Table 12-2 -Refer to Table 12-2. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. What is the total revenue per day that the firm will earn if it employs five workers?

Table 12-6 -Refer to Table 12-6. If the market wage rate is $25 per day, how many workers should the firm hire if it wants to maximize profits?

If the United Auto Workers' Union obtained a 15 percent increase in the wages of its workers, employment in the auto industry would most likely fall if

If a construction boom leads to an increase in the price of lumber, how will the higher lumber prices influence the wood furniture market?

An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause

An increase in the demand for automobiles will increase the demand for labor used to produce the automobiles due to

The value marginal product of a resource is

A decrease in the price of a resource would cause

Tucker Corporation sells its product for $5.00. Tucker's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour. Tucker should hire the additional worker only if the wage rate is

Other things constant, if the demand for computer scientists rises,

Suppose land suitable for wheat production is highly inelastic. An increase in the demand for wheat bread will most likely

If a firm is using a resource hired in a perfectly competitive market, and if the marginal resource cost is less than its marginal revenue product,

Since the demand for a resource depends on the demand for goods that the resource helps produce, the demand for each resource is

The demand for a factor of production depends largely on the

Figure 12-2 -If an unanticipated increase in demand in Figure 12-2 shifts the demand for accountants from D₁ to D₂, how will the higher level of demand influence the wages of accountants in the short run and the long run?