Exam 15: Factor Markets

The amount of labor a firm employs depends on

If the labor market is competitive,a monopoly output market will result in

At age 40,Joe is considering quitting his job and going back for a college degree.He needs two more years full-time.Tuition is $10,000 per year.He earns $30,000 per year.A college degree would raise his annual income by $10,000 per year.He will retire at age 70.His cost of going back to college is

Explain how continuing technical progress may cause the price of scarce,exhaustible resources to fall over time.

If a bond's coupon adjusts to pay a constant real rate of return,then an increase in inflation would cause

As in all other competitive markets price equals marginal cost in a market for a scarce,non-renewable resource that is traded in a competitive market.

In a perfectly competitive resource market,the Marginal Revenue Product Curve is

The real internal rate of return on a college education is about

Suppose there are profit maximizing,competitive buyers and sellers of labor in an industry,and the amount of capital is fixed for each firm.Explain under what condition the output price will equal the wage rate.

You invest an amount today for four years that pays 6% annually.The bank compounds annually.At the end of the four years you will have $150.What amount must you invest today?

The marginal revenue product of labor is usually downward sloping.

One explanation that behavioral economists give for procrastination and other time-inconsistent behavior is

If the market demand elasticity is constant at -3 and a monopolist's MPL = 1.2L^-0.5,then the labor demand for the monopoly is

You can put your $100 in Bank A that pays 8% at the end of the year.You can also put your $100 in Bank B that pays 4% at the end of six months and then 4% again at the end of the year.You will keep your $100 and all interest in the bank.At the end of the year

At age 40,Joe is considering quitting his job and going back for a college degree.He needs two more years full-time.Tuition is $10,000 per year.He earns $30,000 per year.A college degree would raise his annual income by $10,000 per year.He will retire at age 70.If these are real amounts (adjusted for inflation),then the discount rate to be used should be

-The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit.If the wage is $5 per hour,the firm will hire

Why does a monopsonist's marginal expenditure curve lie above the labor supply curve?

Suppose two people with the same level of income and wealth have different discount rates.Joe has a very high discount rate and Jim has a very low discount rate.Which one of the following is TRUE?

Using the Internal Rate of Return approach to investment,one would undertake an investment if the internal rate of return

If the government wants to borrow money to build new highways;then the