Question 1

Which of the following will lead to a decrease in the equilibrium quantity of workers hired and an increase in the equilibrium wage rate?

Accepted Answer

A)   an increase in the productivity of workers
B)   an increase in the rate of immigration
C)   a decrease in the price level of goods
D)   a decrease in the rate of immigrationE) C) and D)
F) A) and B)

Question 2

All else equal, an increase in the productivity of workers in the economy will lead to _____ in the quantity of labor hired and _____ in the wage rate.

Accepted Answer

A)   an increase; an increase
B)   a decrease; an increase
C)   an increase; a decrease
D)   a decrease; a decreaseE) C) and D)
F) A) and C)

Question 3

All else equal, the effect of a decrease in the overall rate of immigration can be shown through a _____ shift of the labor _____ curve.

Accepted Answer

A)   leftward; supply
B)   rightward; supply
C)   leftward; demand
D)   rightward; demandE) B) and D)
F) A) and B)

Question 4

Which one of the following will lead to a rightward shift of the labor supply curve?

Accepted Answer

A)   an increase in the price of the good that labor produces
B)   an increase in the productivity of workers
C)   an increase in wage
D)   an increase in immigration rateE) B) and D)
F) A) and B)

Question 5

Which one of the following statements is FALSE?

Accepted Answer

A)   A firm in a perfectly competitive labor market faces a horizontal labor supply curve.
B)   A firm in a perfectly competitive labor market is a wage taker.
C)   A firm in a perfectly competitive market has a horizontal marginal revenue product curve.
D)   A firm in a perfectly competitive market has a horizontal marginal revenue curve.E) A) and B)
F) A) and C)

Question 6

Which of the following can decrease simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?

Accepted Answer

A)   a decrease in the productivity of workers
B)   a decrease in the rate of immigration
C)   an increase in the price level of goods
D)   an increase in the number of workers of retiring ageE) A) and B)
F) A) and C)

Question 7

All else equal, a decrease in the overall price level of goods and services in the economy will lead to _____ in the quantity of labor hired and _____ in the wage rate.

Accepted Answer

A)   an increase; an increase
B)   a decrease; an increase
C)   an increase; a decrease
D)   a decrease; a decreaseE) A) and B)
F) A) and C)

Question 8

If an increase in the minimum wage above the equilibrium wage does not lead to any additional unemployment and increases the wage of workers, then we know that the _____ curve for labor is perfectly _____.

Accepted Answer

A)   supply; elastic
B)   supply; inelastic
C)   demand; elastic
D)   demand; inelasticE) A) and B)
F) C) and D)

Question 9

The marginal product of labor refers to the extra:

Accepted Answer

A)   revenue that is generated by one more worker.
B)   output that is produced by one more worker.
C)   wage that is earned by one more worker.
D)   capital that is needed to hire one more worker.E) C) and D)
F) B) and C)

Question 10

The demand for factors of production is referred to as a _____ demand.

Accepted Answer

A)   seasonal
B)   cyclical
C)   derived
D)   naturalE) B) and C)
F) C) and D)

Question 11

Each firm in a perfectly competitive labor market faces a _____ labor _____ curve.

Accepted Answer

A)   vertical; supply
B)   vertical; demand
C)   horizontal; supply
D)   horizontal; demandE) B) and C)
F) A) and C)

Question 12

Use the labor supply and labor demand graph to show the impact of the following three events on the equilibrium wage and equilibrium number of workers hired. In each case, mark the original equilibrium as point A and the new equilibrium as point B.
a. an increase in the price of the good that labor produces
b. an increase in the rate of immigration that increases the labor force
c. an increase in the productivity of workers that results from technological advancements

Accepted Answer

a. When there is an increase in the pric...

Question 13

Use Figure: Marginal Revenue Product and Labor Demand. The figure shows the marginal revenue product per hour of labor for a competitive firm. If hiring 40 workers per hour maximizes the firm's profit, then the market wage is _____ per hour.
​
Figure: Marginal Revenue Product and Labor Demand

Accepted Answer

A)   $4
B)   $8
C)   $12
D)   $16E) B) and C)
F) None of the above

Question 14

Which one of the following statements is NOT true?

Accepted Answer

A)   An increase in immigration rates increases the size of the labor force and leads to a rightward shift of the labor supply curve.
B)   An increase in wage rate increases the opportunity cost of free time and therefore increases the quantity supplied of labor.
C)   An increase in the opportunity of work increases the amount of labor supplied and leads to a rightward shift of the labor supply curve.
D)   An increase in number of retiring workers because of demographic change leads to a decrease in labor supply and a leftward shift of the labor supply curve.E) C) and D)
F) B) and C)

Question 15

Which one of the following does NOT fall in the category of factors of production?

Accepted Answer

A)   land
B)   labor
C)   entrepreneurship
D)   natural resourcesE) C) and D)
F) A) and C)

Question 16

According to the law of diminishing returns, all else equal, an increase in the number of workers leads to:

Accepted Answer

A)   a decrease in the total output that is produced by the workers.
B)   a decrease in total revenue that is generated by the workers.
C)   an increase in the marginal product of workers.
D)   a decrease in the marginal product of workers.E) C) and D)
F) All of the above

Question 17

Use Figure: Equilibrium in the Labor Market. Which one of the following can shift the equilibrium from point D to point A?
Figure: Equilibrium in the Labor Market

Accepted Answer

A)   a change in demographics so that there are more retiring people in the economy
B)   an increase in the productivity of workers in the economy
C)   a change in demographics so that there are more working age people in the economy
D)   a decrease in the productivity of workers in the economyE) All of the above
F) C) and D)

Question 18

A change in the demographics of an economy such that there is an increase in the workers of retiring age will, all else equal, lead to _____ in the equilibrium quantity of labor hired and _____ in the equilibrium wage rate.

Accepted Answer

A)   an increase; an increase
B)   a decrease; an increase
C)   an increase; a decrease
D)   a decrease; a decreaseE) A) and D)
F) All of the above

Question 19

Which of the following statements is FALSE?

Accepted Answer

A)   As people work more, the opportunity cost of work increases.
B)   An increase in the immigration rate leads to an increase in the labor supply.
C)   If the opportunity cost of work increases, then the labor supply will decrease.
D)   An increase in the wage of labor shifts the labor supply curve to the right,E) B) and C)
F) A) and B)

Question 20

With increasing urbanization, there is usually a decrease in the opportunity cost of work. All else equal, the impact of increasing urbanization on the labor market can be shown by a _____ shift of the labor _____ curve.

Accepted Answer

A)   leftward; supply
B)   rightward; supply
C)   leftward; demand
D)   rightward; demandE) All of the above
F) A) and B)

Exam 11: Factor Markets

Which one of the following does NOT fall in the category of factors of production?

Correct Answer
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Correct Answer
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a. When there is an increase in the pric...
View Answer

Which one of the following will lead to a rightward shift of the labor supply curve?

Correct Answer
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Which one of the following statements is FALSE?

Correct Answer
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With increasing urbanization, there is usually a decrease in the opportunity cost of work. All else equal, the impact of increasing urbanization on the labor market can be shown by a _ shift of the labor _ curve.

Correct Answer
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A change in the demographics of an economy such that there is an increase in the workers of retiring age will, all else equal, lead to _ in the equilibrium quantity of labor hired and _ in the equilibrium wage rate.

Correct Answer
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Use Figure: Equilibrium in the Labor Market. Which one of the following can shift the equilibrium from point D to point A? Figure: Equilibrium in the Labor Market

Correct Answer
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Which of the following statements is FALSE?

Correct Answer
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Which of the following will lead to a decrease in the equilibrium quantity of workers hired and an increase in the equilibrium wage rate?

Correct Answer
verified

The demand for factors of production is referred to as a _____ demand.

Correct Answer
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According to the law of diminishing returns, all else equal, an increase in the number of workers leads to:

Correct Answer
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Which one of the following statements is NOT true?

Correct Answer
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All else equal, an increase in the productivity of workers in the economy will lead to _ in the quantity of labor hired and _ in the wage rate.

Correct Answer
verified

All else equal, a decrease in the overall price level of goods and services in the economy will lead to _ in the quantity of labor hired and _ in the wage rate.

Correct Answer
verified

All else equal, the effect of a decrease in the overall rate of immigration can be shown through a _ shift of the labor _ curve.

Correct Answer
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Each firm in a perfectly competitive labor market faces a _ labor _ curve.

Correct Answer
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Which of the following can decrease simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?

Correct Answer
verified

Use Figure: Marginal Revenue Product and Labor Demand. The figure shows the marginal revenue product per hour of labor for a competitive firm. If hiring 40 workers per hour maximizes the firm's profit, then the market wage is _____ per hour. Figure: Marginal Revenue Product and Labor Demand

Correct Answer
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The marginal product of labor refers to the extra:

Correct Answer
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If an increase in the minimum wage above the equilibrium wage does not lead to any additional unemployment and increases the wage of workers, then we know that the _ curve for labor is perfectly _.

Correct Answer
verified

Exam 11: Factor Markets

Which one of the following does NOT fall in the category of factors of production?

Correct AnswerverifiedShow Answer

Correct Answerverifieda. When there is an increase in the pric...View AnswerShow Answer

Which one of the following will lead to a rightward shift of the labor supply curve?

Correct AnswerverifiedShow Answer

Which one of the following statements is FALSE?

Correct AnswerverifiedShow Answer

With increasing urbanization, there is usually a decrease in the opportunity cost of work. All else equal, the impact of increasing urbanization on the labor market can be shown by a _____ shift of the labor _____ curve.

Correct AnswerverifiedShow Answer

A change in the demographics of an economy such that there is an increase in the workers of retiring age will, all else equal, lead to _____ in the equilibrium quantity of labor hired and _____ in the equilibrium wage rate.

Correct AnswerverifiedShow Answer

Use Figure: Equilibrium in the Labor Market. Which one of the following can shift the equilibrium from point D to point A? Figure: Equilibrium in the Labor Market

Correct AnswerverifiedShow Answer

Which of the following statements is FALSE?

Correct AnswerverifiedShow Answer

Which of the following will lead to a decrease in the equilibrium quantity of workers hired and an increase in the equilibrium wage rate?

Correct AnswerverifiedShow Answer

The demand for factors of production is referred to as a _____ demand.

Correct AnswerverifiedShow Answer

According to the law of diminishing returns, all else equal, an increase in the number of workers leads to:

Correct AnswerverifiedShow Answer

Which one of the following statements is NOT true?

Correct AnswerverifiedShow Answer

All else equal, an increase in the productivity of workers in the economy will lead to _____ in the quantity of labor hired and _____ in the wage rate.

Correct AnswerverifiedShow Answer

All else equal, a decrease in the overall price level of goods and services in the economy will lead to _____ in the quantity of labor hired and _____ in the wage rate.

Correct AnswerverifiedShow Answer

All else equal, the effect of a decrease in the overall rate of immigration can be shown through a _____ shift of the labor _____ curve.

Correct AnswerverifiedShow Answer

Each firm in a perfectly competitive labor market faces a _____ labor _____ curve.

Correct AnswerverifiedShow Answer

Which of the following can decrease simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?

Correct AnswerverifiedShow Answer

Use Figure: Marginal Revenue Product and Labor Demand. The figure shows the marginal revenue product per hour of labor for a competitive firm. If hiring 40 workers per hour maximizes the firm's profit, then the market wage is _____ per hour. ​ Figure: Marginal Revenue Product and Labor Demand

Correct AnswerverifiedShow Answer

The marginal product of labor refers to the extra:

Correct AnswerverifiedShow Answer

If an increase in the minimum wage above the equilibrium wage does not lead to any additional unemployment and increases the wage of workers, then we know that the _____ curve for labor is perfectly _____.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
a. When there is an increase in the pric...
View Answer

Correct Answer
verified

Correct Answer
verified

With increasing urbanization, there is usually a decrease in the opportunity cost of work. All else equal, the impact of increasing urbanization on the labor market can be shown by a _ shift of the labor _ curve.

Correct Answer
verified

A change in the demographics of an economy such that there is an increase in the workers of retiring age will, all else equal, lead to _ in the equilibrium quantity of labor hired and _ in the equilibrium wage rate.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

All else equal, an increase in the productivity of workers in the economy will lead to _ in the quantity of labor hired and _ in the wage rate.

Correct Answer
verified

All else equal, a decrease in the overall price level of goods and services in the economy will lead to _ in the quantity of labor hired and _ in the wage rate.

Correct Answer
verified

All else equal, the effect of a decrease in the overall rate of immigration can be shown through a _ shift of the labor _ curve.

Correct Answer
verified

Each firm in a perfectly competitive labor market faces a _ labor _ curve.

Correct Answer
verified

Correct Answer
verified

Use Figure: Marginal Revenue Product and Labor Demand. The figure shows the marginal revenue product per hour of labor for a competitive firm. If hiring 40 workers per hour maximizes the firm's profit, then the market wage is _____ per hour. Figure: Marginal Revenue Product and Labor Demand

Correct Answer
verified

Correct Answer
verified

If an increase in the minimum wage above the equilibrium wage does not lead to any additional unemployment and increases the wage of workers, then we know that the _ curve for labor is perfectly _.

Correct Answer
verified