Exam 18: Factor Markets and the Distribution of Income

The fact that Tom Brady, the quarterback of the New England Patriots, is paid more than a high school football coach is an example of a wage disparity most likely caused by differences in ability and talent.

(True/False)

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Question 61

In the United States just after the turn of the twenty-first century, 70% of total income, by far the largest share, took the form of:

(Multiple Choice)

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Question 62

Labor with a particular skill level and training is used in only two industries: grape cultivation and cranberry cultivation. Which of the following is likely to cause an INCREASE in the demand for this type of labor?

(Multiple Choice)

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Question 63

If the marginal product is _, the value of marginal product must be _.

(Multiple Choice)

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Question 64

A firm's demand curve for labor will shift because of:

(Multiple Choice)

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Question 65

An important assumption underlying the marginal productivity theory of income distribution is that:

(Multiple Choice)

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Question 66

Although improved technology can either increase or decrease the demand for a factor of production, the usual effect of technological progress is to reduce demand for labor, holding everything else constant.

(True/False)

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Question 67

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 $80 per hour, the profit-maximizing quantity of labor is _____ worker(s).

(Multiple Choice)

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Question 68

An efficiency wage is:

(Multiple Choice)

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Question 69

Factors of production are different from inputs in that factors of production:

(Multiple Choice)

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Question 70

If the demand for orange juice increases, the derived demand for orange grove workers will decrease.

(True/False)

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Question 71

Use the following to answer questions Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. The equilibrium market wage for bricklayers is $100. For a profit-maximizing firm at the equilibrium level of output, the VMPLbricklayers:

(Multiple Choice)

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Question 72

The value of the marginal product is equal to:

(Multiple Choice)

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Question 73

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. The price of a power cord is $2, the market wage rate is $20 per hour, and eight workers are hired. Profit can be maximized by hiring _____ worker(s).

(Multiple Choice)

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Question 74

The amount that an additional unit of a factor adds to a firm's total revenue is called the:

(Multiple Choice)

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Question 75

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 $2 and the wage rate is $90 per hour, the profit-maximizing quantity of labor is _____ workers.

(Multiple Choice)

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Question 76

The amount by which an additional unit of a factor increases a firm's _ during a period is the _.

(Multiple Choice)

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Question 77

According to the marginal productivity theory of income distribution, if a unit of labor is paid more than a unit of capital, it is because at the equilibrium quantity of each factor, the value of the marginal product of labor is equal to the value of the marginal product of capital.

(True/False)

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Question 78

The amount by which the use of an additional unit of a factor of production increases a firm's total revenue during a period is called the:

(Multiple Choice)

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Question 79

In a perfectly competitive labor market, the equilibrium wage:

(Multiple Choice)

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Question 80

Showing 61 - 80 of 314

Exam 18: Factor Markets and the Distribution of Income

The fact that Tom Brady, the quarterback of the New England Patriots, is paid more than a high school football coach is an example of a wage disparity most likely caused by differences in ability and talent.

In the United States just after the turn of the twenty-first century, 70% of total income, by far the largest share, took the form of:

Labor with a particular skill level and training is used in only two industries: grape cultivation and cranberry cultivation. Which of the following is likely to cause an INCREASE in the demand for this type of labor?

If the marginal product is _____, the value of marginal product must be _____.

A firm's demand curve for labor will shift because of:

An important assumption underlying the marginal productivity theory of income distribution is that:

Although improved technology can either increase or decrease the demand for a factor of production, the usual effect of technological progress is to reduce demand for labor, holding everything else constant.

An efficiency wage is:

Factors of production are different from inputs in that factors of production:

If the demand for orange juice increases, the derived demand for orange grove workers will decrease.

Use the following to answer questions Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. The equilibrium market wage for bricklayers is $100. For a profit-maximizing firm at the equilibrium level of output, the VMPLbricklayers:

The value of the marginal product is equal to:

The amount that an additional unit of a factor adds to a firm's total revenue is called the:

The amount by which an additional unit of a factor increases a firm's _____ during a period is the _____.

According to the marginal productivity theory of income distribution, if a unit of labor is paid more than a unit of capital, it is because at the equilibrium quantity of each factor, the value of the marginal product of labor is equal to the value of the marginal product of capital.

The amount by which the use of an additional unit of a factor of production increases a firm's total revenue during a period is called the:

In a perfectly competitive labor market, the equilibrium wage:

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

If the marginal product is _, the value of marginal product must be _.

The amount by which an additional unit of a factor increases a firm's _ during a period is the _.