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Exam 18: The Markets for the Factors of Production

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Question 121

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Which of the following events could increase the demand for labor?

A) A decrease in output price
B) A decrease in the amount of capital available for workers to use
C) An increase in the marginal productivity of workers
D) A decrease in the wage paid to workers

E) B) and D)
F) A) and C)

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Question 122

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Which of the following is not correct?

A) High-skilled immigration has many economic benefits.
B) Each year in the United States, about one-third of the people earning a PhD. in science or engineering are foreign born.
C) Low-skilled immigration lowers the earnings of native-born workers by 10-20 percent.
D) Illegal immigrants may pay less in taxes, but they also are ineligible for many government benefits.

E) A) and C)
F) A) and B)

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Question 123

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An increase in population can be expected to

An increase in the value of the marginal product of labor has the effect of increasing the

Labor markets are different from most other markets because labor demand is

A change in the supply of one factor of production

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 fourth worker?

Table 18-B Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day. -Refer to Table 18-B. The marginal product of labor begins to diminish with the addition of which worker?

Scenario 18-3 Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $13 per hour. During the summer, he drives a tour bus around the ski resort, earning $11 per hour. -Refer to Scenario 18-3. During the winter months, what is Sam's opportunity cost of taking an hour off work to go skiing?

Restaurants' demand for cooks and waiters is inseparably linked to the supply of __________.

Miguel receives a pay raise at his part-time job from $7.50 to $9 per hour. He used to work 10 hours per week, but now he decides to work 12 hours per week. For this price range, his labor supply curve is

A profit-maximizing, competitive firm for which the marginal product of labor is diminishing also experiences

An upward-sloping labor-supply curve implies that an increase in the wage induces

Which of the following is correct?

If men's preferences for work change such that more men want to be stay-at-home fathers, the wages paid to men who remain in the workplace would rise, all else equal.

Table 18-9 The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis. -Refer to Table 18-9. What is the marginal product of the third unit of labor?

Consider the market for medical doctors. Suppose the opportunity cost of going to medical school decreases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium quantity of doctors will

Table 18-7 -Refer to Table 18-7. What is the market price of the final good?

Both theory and history point to a close relationship between increases in

Diane's Auto World installs tires on automobiles, light trucks, and sport utility vehicles. She is a profit-maximizing business owner whose firm operates in a competitive market. The marginal cost of installing a tire is $20. The marginal productivity of the last worker that Diane hired was 2 tires per hour. What is the maximum hourly wage that Diane was willing to pay the last worker hired?