Exam 18: Factor Markets and the Distribution of Income

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Decisions about labor supply result from decisions about time allocation, which deals with determining how many hours to spend on different activities.

(True/False)

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Question 301

As a rule, a profit-maximizing restaurant owner employs each factor of production up to the point at which the value of the marginal product of the _ unit of the factor employed is _ that factor's price.

(Multiple Choice)

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Question 302

Use the following to answer questions Figure: The Value of the Marginal Product Curve -(Figure: The Value of the Marginal Product Curve) In the figure The Value of the Marginal Product Curve, the VMPL curve will shift to the right if:

(Multiple Choice)

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Question 303

Suppose Professor Jones receives a promotion and an increase in her annual salary. Her labor supply curve will be _ if the substitution effect is _ than the income effect.

(Multiple Choice)

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Question 304

The supply curves for goods and services are almost universally upward-sloping. How is it that labor supply can be downward-sloping in certain cases?

(Essay)

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Question 305

In terms of contribution to total income in the United States, the single most important factor of production is:

(Multiple Choice)

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Question 306

Which of the following is NOT true about the factor distribution of income?

(Multiple Choice)

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Question 307

In the U.S. labor market, Hispanics have the lowest median earnings.

(True/False)

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Question 308

The ___ effect of a _ wage causes individuals to substitute ___.

(Multiple Choice)

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Question 309

A determinant of the demand for a factor of production is the:

(Multiple Choice)

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Question 310

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 $120 per hour, the profit-maximizing quantity of labor is _____ workers.

(Multiple Choice)

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Question 311

A factor demand curve will shift because:

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Question 312

Efficiency wages reduce unemployment.

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Question 313

According to the _____, in a perfectly competitive economy each factor of production is paid its equilibrium value of the marginal product.

(Multiple Choice)

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Question 314

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Exam 18: Factor Markets and the Distribution of Income

Decisions about labor supply result from decisions about time allocation, which deals with determining how many hours to spend on different activities.

As a rule, a profit-maximizing restaurant owner employs each factor of production up to the point at which the value of the marginal product of the _____ unit of the factor employed is _____ that factor's price.

Use the following to answer questions Figure: The Value of the Marginal Product Curve -(Figure: The Value of the Marginal Product Curve) In the figure The Value of the Marginal Product Curve, the VMPL curve will shift to the right if:

Suppose Professor Jones receives a promotion and an increase in her annual salary. Her labor supply curve will be _____ if the substitution effect is _____ than the income effect.

The supply curves for goods and services are almost universally upward-sloping. How is it that labor supply can be downward-sloping in certain cases?

In terms of contribution to total income in the United States, the single most important factor of production is:

Which of the following is NOT true about the factor distribution of income?

In the U.S. labor market, Hispanics have the lowest median earnings.

The _____ effect of a _____ wage causes individuals to substitute _____.

A determinant of the demand for a factor of production is the:

A factor demand curve will shift because:

Efficiency wages reduce unemployment.

According to the _____, in a perfectly competitive economy each factor of production is paid its equilibrium value of the marginal product.

First Principles

Economic Models- Trade-Offs and Trade

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas- Meddling With Markets

Elasticity

Taxes

The Rational Consumer

International Trade

Decision Making by Individuals and Firms

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Uncertainty, Risk, and Private Information

Macroeconomics- the Big Picture

Gdp and the Consumer Price Index

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Macroeconomics- Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

Toward a Fuller Understanding

Consumer Preferences and Consumer Choice

Indifference Curve Analysis of Labor Supply

Filters

As a rule, a profit-maximizing restaurant owner employs each factor of production up to the point at which the value of the marginal product of the _ unit of the factor employed is _ that factor's price.

Suppose Professor Jones receives a promotion and an increase in her annual salary. Her labor supply curve will be _ if the substitution effect is _ than the income effect.

The ___ effect of a _ wage causes individuals to substitute ___.