Exam 18: Factor Markets and the Distribution of Income

Human capital:

According to the marginal productivity theory of income distribution, every factor of production is paid a wage equal to the equilibrium value of its average product.

A wage _____ reduces the quantity of labor supplied through the _____ effect.

Which of the following is a factor of production at a college?

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print. If the market wage rises to $70:

Differences in the attractiveness of different types of jobs resulting in differences in wages is NOT consistent with the marginal productivity theory of income distribution.

Over the past several years, the demand for phone operators has fallen dramatically. Which of the following would account for this development?

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, if the market wage rate increases:

The median earnings of Hispanics are greater than the median earnings of African Americans.

Employers can sometimes organize to pay lower wages when:

In the markets for goods and services, households demand goods and services and firms supply goods and services.

Use the following to answer questions : -(Table: Employment and Output) In the table Employment and Output, if the price of a bushel of wheat is $10 and the price of labor (wage) is $120, then the profit-maximizing quantity of labor is:

Firms will continue to hire workers as long as:

Gabriella often faces a trade-off between time at the beach and time working as a model. She earns $40 per hour as a model and values going to the beach at the same price. When explaining this to her parents, she says, "The marginal utility per hour working is the same as the marginal utility per hour of going to the beach." This is an illustration of:

At Hamill Manufacturing of Pennsylvania highly skilled senior machinists are paid $70,000, excluding benefits, but the average skilled machinist generates approximately $137,000 in value added. This difference is due to the fact that:

A lower wage:

Since the 1960s the number of women in the labor force has decreased.

Sam and Bob have the same educational background. Both have been policemen in Memphis for 10 years. Sam works from 11 P.M. until 7 A.M., and Bob works from 7 A.M. until 3 P.M. Sam's salary is $800 per month higher than Bob's salary. This is an example of a wage disparity due to:

An increase in the demand for construction workers may come about because of a(n):

A lumberjack cutting giant redwoods in California being paid more than a person cutting and selling small Christmas trees is an example of wage disparity due primarily to compensating differentials.