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Exam 18: The Market For the Factors of Production.

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Question 71

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The term Luddite refers to "tekkies" or people who are the first to adopt new technological advances.

A) True
B) False

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Question 72

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Which term below refers to "the accumulation of goods produced in the past that are being used in the present to produce new goods and services"?

A) inventories
B) products
C) factors of production
D) capital

E) All of the above
F) A) and B)

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Question 73

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From 1959 to 2009,inflation-adjusted wages increased by 131 percent in the U.S.As a result,firms reduced the amount of labor they employed by nearly 20 percent.

Figure 18-1. On the graph, L represents the quantity of labor and Q represents the quantity of output per week. -Refer to Figure 18-1.Suppose the firm hires each unit of labor for $600 per week,and each unit of output sells for $9.What is the value of the marginal product of the third worker?

Table 18-10 Consider the following daily production data for Caroline's Cookies, Inc. Caroline's sells cookies for $2.50 each and pays the workers a wage of $325 per day. -Refer to Table 18-10.What is the marginal profit of the fourth worker?

When an individual's income goes up,that individual may choose to supply less labor,resulting in a backward-sloping labor supply curve.

Table 18-6 -Refer to Table 18-6.What is the value for the cell labeled FF?

Consider the labor market for short-order cooks.An increase in the wages paid to fast-food workers will cause

Table 18-9 -Refer to Table 18-9.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 18-9 -Refer to Table 18-9.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 marginal revenue product of the third worker?

A household member's decision about how much labor to supply is most closely linked to

The labor supply curve reflects how workers' decisions about the labor-leisure tradeoff respond to changes in the opportunity cost of leisure.

Table 18-6 -Refer to Table 18-6.What is the market price of the final good?

Stock dividends and interest payments are examples of factors of production.

If the demand curve for beef shifts to the right,then the value of the marginal product of labor for butchers will

Consider the market for capital equipment.Suppose the market price of firms' output decreases.Holding all else constant,the equilibrium quantity of capital equipment will

Dan owns one of the many bakeries in New York City.Which of the following events will lead to an increase in Dan's demand for the services of bakers? (i) The price of muffins increases.(Muffins are Dan's specialty.) (ii) Dan adds three new ovens to the kitchen area to help the bakers work faster. (iii) Local bakers form a union to protect themselves from low wages.

Suppose that workers immigrate to Minnesota from Canada.Which of the following correctly describes what would happen in the market for labor in Minnesota?

Figure 18-3 -Refer to Figure 18-3.Suppose that the price of the output is $20.What is the value of the marginal product of the second worker?

Describe the difference between a diminishing marginal product of labor and a negative marginal product of labor.Why would a profit-maximizing firm always choose to operate where the marginal product of labor is decreasing (but not negative)?