Question 1

For any competitive labor market,changes that decrease the number of workers will:

Accepted Answer

A)  decrease the labor supply and shift the supply curve left.
B)  increase the labor supply and shift the supply curve right.
C)  decrease the labor supply and shift the supply curve right.
D)  increase the labor supply and shift the supply curve left.E) B) and C)
F) A) and B)

Question 2

The determinants of labor demand include:

Accepted Answer

A)  culture,population,and other opportunities.
B)  supply of other factors,technology,and output prices.
C)  culture,supply of other factors,and technology.
D)  None of these statements is true.E) B) and C)
F) A) and D)

Question 3

If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees,we would expect the labor-demand curve to shift:

Accepted Answer

A)  to the left and wages would rise.
B)  to the left and wages would decrease.
C)  to the right and wages would rise.
D)  None of these statements is true.E) A) and D)
F) A) and C)

Question 4

A "capitalist" is someone who:

Accepted Answer

A)  owns stock.
B)  holds a treasury bond.
C)  opens a retirement account.
D)  All of these statements are true.E) A) and C)
F) All of the above

Question 5

In economics,the term "leisure" refers to:

Accepted Answer

A)  all nonwork activities.
B)  nonwork activities that individuals enjoy doing.
C)  those activities that individuals enjoy doing.
D)  None of these activities would be considered leisure.E) A) and B)
F) A) and D)

Question 6

Sadie works at a factory for $15 an hour and typically works 40 hours a week.Sadie gets a pay raise and now earns $20 an hour.She decides to work 45 hours a week at $20 an hour.Her response:

Accepted Answer

A)  tells us the price effect outweighed the income effect of her pay raise.
B)  implies her labor-supply curve is upward sloping.
C)  is typically what is observed.
D)  All of these statements are true.E) B) and C)
F) A) and B)

Question 7

The question of how much labor a firm will hire comes down to:

Accepted Answer

A)  whether added workers are going to generate more revenue than what it costs to hire them.
B)  if the added workers are going to add profits to the firm.
C)  whether the value of the marginal product is greater than,less than,or equal to the marginal cost.
D)  All of these statements are true.E) None of the above
F) A) and B)

Question 8

The labor-supply curve will be downward sloping if:

Accepted Answer

A)  the income effect outweighs the price effect.
B)  the price effect outweighs the income effect.
C)  the substitution effect outweighs the income effect.
D)  The labor-supply curve is never downward sloping.E) All of the above
F) None of the above

Question 9

At the competitive firm's profit-maximizing quantity of labor:

Accepted Answer

A)  the value of the last worker's marginal product is greater than or equal to marginal cost of that input.
B)  the value of the last worker's marginal product is less than the marginal cost of that input.
C)  marginal profits are always positive.
D)  None of these statements is true.E) A) and B)
F) A) and C)

Exam 16: The Factors of Production

Sadie works at a factory for $15 an hour and typically works 40 hours a week.Sadie gets a pay raise and now earns $20 an hour.She decides to work 45 hours a week at $20 an hour.Her response:

Correct Answer
verified

For any competitive labor market,changes that decrease the number of workers will:

Correct Answer
verified

The question of how much labor a firm will hire comes down to:

Correct Answer
verified

The determinants of labor demand include:

Correct Answer
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The labor-supply curve will be downward sloping if:

Correct Answer
verified

In economics,the term "leisure" refers to:

Correct Answer
verified

At the competitive firm's profit-maximizing quantity of labor:

Correct Answer
verified

A "capitalist" is someone who:

Correct Answer
verified

If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees,we would expect the labor-demand curve to shift:

Correct Answer
verified

Exam 16: The Factors of Production

Sadie works at a factory for $15 an hour and typically works 40 hours a week.Sadie gets a pay raise and now earns $20 an hour.She decides to work 45 hours a week at $20 an hour.Her response:

Correct AnswerverifiedShow Answer

For any competitive labor market,changes that decrease the number of workers will:

Correct AnswerverifiedShow Answer

The question of how much labor a firm will hire comes down to:

Correct AnswerverifiedShow Answer

The determinants of labor demand include:

Correct AnswerverifiedShow Answer

The labor-supply curve will be downward sloping if:

Correct AnswerverifiedShow Answer

In economics,the term "leisure" refers to:

Correct AnswerverifiedShow Answer

At the competitive firm's profit-maximizing quantity of labor:

Correct AnswerverifiedShow Answer

A "capitalist" is someone who:

Correct AnswerverifiedShow Answer

If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees,we would expect the labor-demand curve to shift:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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