Question 1

Grace is headed to work at a catering business as a waitress for $100.Her sister Paige calls and asks her to go horseback riding instead.Grace decides to go to work,which implies Grace's opportunity cost of working is:

Accepted Answer

A)   greater than $100.
B)   less than $100.
C)   equal to $100.
D)   no more than $100.E) A) and D)
F) A) and C)

Question 2

Which of the following industries would be considered to have a labor intensive production process?

Accepted Answer

A)   Printing a novel
B)   Farming in a poor country
C)   Building a road.
D)   Driving a truck.E) All of the above
F) B) and C)

Question 3

Budget cuts which lead to more lax protection of our borders will affect the labor market in California.It will cause a(n) ___________ in labor supply,resulting in __________.

Accepted Answer

A)   decrease; higher wages
B)   increase; higher wages
C)   increase; lower wages
D)   decrease; lower wagesE) All of the above
F) B) and C)

Question 4

The relationship between the quantity of inputs and the quantity of outputs is called a:

Accepted Answer

A)   cost function.
B)   production function.
C)   profit function.
D)   resource function.E) B) and C)
F) A) and D)

Question 5

A minimum wage law is a:

Accepted Answer

A)   price ceiling.
B)   price floor.
C)   customary norm without legal structure or protection.
D)   quantity restriction.E) A) and B)
F) A) and C)

Question 6

All factors of production usually experience:

Accepted Answer

A)   decreasing average variable cost.
B)   diminishing marginal productivity.
C)   decreasing average fixed costs.
D)   diminishing total productivity.E) A) and C)
F) A) and D)

Question 7

In the market for labor:

Accepted Answer

A)   individuals make up the demand.
B)   firms create the supply.
C)   the price in the market is the wage.
D)   individuals are never paid above their productivity.E) None of the above
F) A) and B)

Question 8

A labor intensive production process is one in which:

Accepted Answer

A)   a lot of labor is hired relative to the total inputs needed to produce the good.
B)   highly skilled labor is needed to produce the good.
C)   a part of the production process must be done by labor and cannot be substituted.
D)   total costs will be minimized if labor is the primary factor of production used.E) A) and B)
F) A) and C)

Question 9

Julie works at a local hat factory for $12 an hour and typically works 40 hours a week.The company threatens layoffs,so Julie and the others agree to a pay cut.Julie now earns $10 an hour and works every hour over 40 that her boss will let her.Julie's response to this pay cut was to work:

Accepted Answer

A)   more, demonstrating a dominant income effect.
B)   more, demonstrating a dominant price effect.
C)   less, demonstrating a dominant income effect.
D)   less, demonstrating a dominant price effect.E) None of the above
F) B) and D)

Question 10

Any event that decreases the value of the marginal product of labor will:

Accepted Answer

A)   decrease labor demand.
B)   decrease labor supply.
C)   increase labor demand.
D)   increase labor supply.E) A) and C)
F) A) and B)

Question 11

For any competitive labor market,what change would have to occur to cause the labor supply to increase and shift the supply curve right?

Accepted Answer

A)   Number of firms increases
B)   Opportunity cost of work decreases
C)   Number of workers decreases
D)   Opportunity cost of work increasesE) A) and B)
F) A) and C)

Question 12

Claire is on her way to her job at a call center where she was planning on spending three hours.She can drop in and work any hour she wants to and earn $12 per hour.Her friend calls and invites her to spend the next three hours bungee jumping.Claire decides to go with her friend,which tells us Claire's opportunity cost of working for three hours is:

Accepted Answer

A)   greater than $36.
B)   greater than $12.
C)   less than $36.
D)   less than $12.E) B) and C)
F) B) and D)

Question 13

A profit-seeking firm will choose the combination of inputs that maximizes profit,based on the:

Accepted Answer

A)   ratio of each factor of production.
B)   substitutability of each factor of production.
C)   local price of each factor of production.
D)   total productivity of each factor of production.E) A) and C)
F) All of the above

Question 14

The curve formed by plotting the value of the marginal product for workers against quantity of labor is:

Accepted Answer

A)   downward sloping.
B)   upward sloping.
C)   perfectly elastic, for competitive firms.
D)   perfectly inelastic.E) A) and C)
F) A) and D)

Question 15

The increase in the quantity of labor supplied in response to a higher wage is called the:

Accepted Answer

A)   price effect.
B)   labor effect.
C)   income effect.
D)   substitution effect.E) C) and D)
F) All of the above

Question 16

The labor-supply and labor-demand curves for the market intersect:

Accepted Answer

A)   at the equilibrium wage.
B)   above equilibrium price.
C)   at the number of unemployed people in the market.
D)   All of these statements are true.E) C) and D)
F) A) and B)

Question 17

Which of the following has a production process that would be considered labor intensive?

Accepted Answer

A)   Hairstyling services
B)   Farming in a rich country
C)   T-shirt production
D)   Road construction.E) A) and B)
F) A) and C)

Question 18

A slump in one industry could increase the relative attractiveness of another industry:

Accepted Answer

A)   increasing the quantity of labor supplied in the latter.
B)   decreasing the quantity of labor supplied in the latter.
C)   increasing the quantity of labor demanded in the latter.
D)   decreasing the quantity of labor demanded in the latter.E) None of the above
F) A) and B)

Question 19

The more human capital workers have,the:

Accepted Answer

A)   less productive they are.
B)   more productive they are.
C)   lower the value of their marginal product.
D)   more technology they will require for their job.E) B) and C)
F) None of the above

Question 20

For any competitive labor market,changes that increase the opportunity cost of work will:

Accepted Answer

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

Exam 16: The Factors of Production

All factors of production usually experience:

Correct Answer
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A minimum wage law is a:

Correct Answer
verified

Grace is headed to work at a catering business as a waitress for $100.Her sister Paige calls and asks her to go horseback riding instead.Grace decides to go to work,which implies Grace's opportunity cost of working is:

Correct Answer
verified

Any event that decreases the value of the marginal product of labor will:

Correct Answer
verified

The curve formed by plotting the value of the marginal product for workers against quantity of labor is:

Correct Answer
verified

The labor-supply and labor-demand curves for the market intersect:

Correct Answer
verified

The increase in the quantity of labor supplied in response to a higher wage is called the:

Correct Answer
verified

For any competitive labor market,what change would have to occur to cause the labor supply to increase and shift the supply curve right?

Correct Answer
verified

A profit-seeking firm will choose the combination of inputs that maximizes profit,based on the:

Correct Answer
verified

Correct Answer
verified

For any competitive labor market,changes that increase the opportunity cost of work will:

Correct Answer
verified

In the market for labor:

Correct Answer
verified

Which of the following industries would be considered to have a labor intensive production process?

Correct Answer
verified

The more human capital workers have,the:

Correct Answer
verified

Julie works at a local hat factory for $12 an hour and typically works 40 hours a week.The company threatens layoffs,so Julie and the others agree to a pay cut.Julie now earns $10 an hour and works every hour over 40 that her boss will let her.Julie's response to this pay cut was to work:

Correct Answer
verified

The relationship between the quantity of inputs and the quantity of outputs is called a:

Correct Answer
verified

A slump in one industry could increase the relative attractiveness of another industry:

Correct Answer
verified

A labor intensive production process is one in which:

Correct Answer
verified

Which of the following has a production process that would be considered labor intensive?

Correct Answer
verified

Budget cuts which lead to more lax protection of our borders will affect the labor market in California.It will cause a(n) _ in labor supply,resulting in .

Correct Answer
verified

Exam 16: The Factors of Production

All factors of production usually experience:

Correct AnswerverifiedShow Answer

A minimum wage law is a:

Correct AnswerverifiedShow Answer

Grace is headed to work at a catering business as a waitress for $100.Her sister Paige calls and asks her to go horseback riding instead.Grace decides to go to work,which implies Grace's opportunity cost of working is:

Correct AnswerverifiedShow Answer

Any event that decreases the value of the marginal product of labor will:

Correct AnswerverifiedShow Answer

The curve formed by plotting the value of the marginal product for workers against quantity of labor is:

Correct AnswerverifiedShow Answer

The labor-supply and labor-demand curves for the market intersect:

Correct AnswerverifiedShow Answer

The increase in the quantity of labor supplied in response to a higher wage is called the:

Correct AnswerverifiedShow Answer

For any competitive labor market,what change would have to occur to cause the labor supply to increase and shift the supply curve right?

Correct AnswerverifiedShow Answer

A profit-seeking firm will choose the combination of inputs that maximizes profit,based on the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For any competitive labor market,changes that increase the opportunity cost of work will:

Correct AnswerverifiedShow Answer

In the market for labor:

Correct AnswerverifiedShow Answer

Which of the following industries would be considered to have a labor intensive production process?

Correct AnswerverifiedShow Answer

The more human capital workers have,the:

Correct AnswerverifiedShow Answer

Julie works at a local hat factory for $12 an hour and typically works 40 hours a week.The company threatens layoffs,so Julie and the others agree to a pay cut.Julie now earns $10 an hour and works every hour over 40 that her boss will let her.Julie's response to this pay cut was to work:

Correct AnswerverifiedShow Answer

The relationship between the quantity of inputs and the quantity of outputs is called a:

Correct AnswerverifiedShow Answer

A slump in one industry could increase the relative attractiveness of another industry:

Correct AnswerverifiedShow Answer

A labor intensive production process is one in which:

Correct AnswerverifiedShow Answer

Which of the following has a production process that would be considered labor intensive?

Correct AnswerverifiedShow Answer

Budget cuts which lead to more lax protection of our borders will affect the labor market in California.It will cause a(n) ___________ in labor supply,resulting in __________.

Correct AnswerverifiedShow Answer

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Correct Answer
verified

Budget cuts which lead to more lax protection of our borders will affect the labor market in California.It will cause a(n) _ in labor supply,resulting in .

Correct Answer
verified