Question 1

Eli is headed to his job harvesting grapes at a local vineyard.He earns $8 every hour he works there.He could also earn $7 an hour working as a bagger at the local grocery.Assuming Eli can only choose between these 2 jobs and that the benefits of each job are the same.Eliâ€™s opportunity cost every hour he decides to work at his harvesting job is:

Accepted Answer

A)   more than $7.
B)   less than $7.
C)   exactly $7.
D)   more than $7E) All of the above
F) A) and B)

Question 2

Tom has a PhD in history and teaches at the local college where he earns $75,000 a year.Truth be told,Tom loves teaching so much,he would gladly do it for $45,000.Which of the following can be said?

Accepted Answer

A)   Tom's economic rent is worth $30,000.
B)   Tom's producer surplus is worth $30,000.
C)   The value of Tom's marginal product is $75,000.
D)   All of these statements are true.E) A) and B)
F) C) and D)

Question 3

A monopsony is characterized as a market which has:

Accepted Answer

A)   many buyers and one seller.
B)   one buyer and many sellers.
C)   many buyers and many sellers.
D)   one buyer and one seller.E) B) and C)
F) A) and D)

Question 4

The determinants of labor demand include:

Accepted Answer

A)   culture and other opportunities.
B)   supply of other factors and output prices.
C)   culture and technology.
D)   culture and population.E) A) and C)
F) C) and D)

Question 5

The market labor-supply curve has all of the following properties except it:

Accepted Answer

A)   is always upward sloping.
B)   reflects people's willingness to work more when wages are higher.
C)   shows the relationship between the price of labor and the quantity supplied.
D)   shifts with changes in the opportunity cost for workE) All of the above
F) C) and D)

Question 6

If the graph shown is displaying a competitive labor market:

Accepted Answer

A)   D would represent the workers' demand for jobs at each wage.
B)   Q* would represent the equilibrium wage.
C)   P* would represent how many people are employed in the market.
D)   Q* would represent the equilibrium number of workers in the market.E) None of the above
F) A) and B)

Question 7

When a rare skill contributes to the production of something that consumers value highly the:

Accepted Answer

A)   value of the marginal product is high.
B)   marginal product is high.
C)   marginal cost per unit is low.
D)   total product is high.E) C) and D)
F) A) and B)

Question 8

The factor of production called "labor" can be defined as the:

Accepted Answer

A)   time spent by employees in the production of goods, but not services.
B)   fraction of total costs spent on people.
C)   number of worker-hours a business uses at a given time.
D)   number of people a business has access to at any given time.E) C) and D)
F) None of the above

Question 9

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

Accepted Answer

A)   Number of firms increases
B)   None of these statements is true.
C)   Number of workers increases
D)   Opportunity cost of work increasesE) A) and B)
F) C) and D)

Question 10

In general,as wages increase:

Accepted Answer

A)   people are willing to work less.
B)   people are willing to work more.
C)   it does not affect people's willingness to work.
D)   the benefit of working goes down.E) B) and C)
F) A) and D)

Question 11

In a competitive labor market,if the supply of labor decreases,wages will:

Accepted Answer

A)   increase.
B)   decrease.
C)   remain the same.
D)   drop to zero.E) All of the above
F) A) and C)

Question 12

Which of the following would not be considered a "leisure" activity by economists?

Accepted Answer

A)   Making dinner
B)   Going skiing
C)   Cleaning the bathroom floor
D)   Making a work call.E) B) and C)
F) B) and D)

Question 13

For a competitive firm,the value of output ___________ and the marginal product of labor ___________ with each additional worker hired.

Accepted Answer

A)   stays constant; decreases
B)   increases; decreases
C)   increases; increases
D)   decreases; stays constantE) A) and C)
F) All of the above

Question 14

Economists refer to the pattern of income that people derive from different factors of production as the:

Accepted Answer

A)   factor price.
B)   factor distribution of income.
C)   factor stream of income.
D)   expected future factor value.E) C) and D)
F) B) and C)

Question 15

In a competitive labor market,if the demand for labor increases,labor demand will shift to the:

Accepted Answer

A)   right and wages will increase.
B)   left and wages will increase.
C)   right and wages will decrease.
D)   left and wages will decrease.E) All of the above
F) A) and B)

Question 16

Eli can decide between two jobs.One job is harvesting grapes at a local vineyard.He would earn $8 every hour he works there.He could also earn $7 an hour working as a bagger at the local grocery.Assuming Eli can only choose between these 2 jobs and that the benefits of both jobs are the same.If Eli decides to work at the grocery store as a bagger the opportunity cost every hour he decides to work at the grocery is:

Accepted Answer

A)   more than $8.
B)   less than $8.
C)   exactly $8.
D)   exactly $7.E) B) and D)
F) None of the above

Question 17

A "company town" is one in which:

Accepted Answer

A)   all employees of a company live within its confines.
B)   a single company employs the great majority of people in a town and owns most structures in the town.
C)   the company directs most town business by assisting local government.
D)   a single company directly regulates and monitors all town activity.E) B) and C)
F) None of the above

Question 18

The decrease in the quantity of labor supplied due to the greater demand for leisure caused by a higher income is called the:

Accepted Answer

A)   income effect.
B)   price effect.
C)   substitution effect.
D)   labor effect.E) A) and B)
F) A) and C)

Question 19

Farming in poor countries is considered to be:

Accepted Answer

A)   capital intensive.
B)   labor intensive.
C)   production intensive.
D)   cost intensive.E) All of the above
F) C) and D)

Exam 16: The Factors of Production

If the graph shown is displaying a competitive labor market:

Correct Answer
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A "company town" is one in which:

Correct Answer
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For any competitive labor market,what change would have to occur to cause the labor supply to decrease and shift the supply curve left?

Correct Answer
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Correct Answer
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Economists refer to the pattern of income that people derive from different factors of production as the:

Correct Answer
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In a competitive labor market,if the supply of labor decreases,wages will:

Correct Answer
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The factor of production called "labor" can be defined as the:

Correct Answer
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The decrease in the quantity of labor supplied due to the greater demand for leisure caused by a higher income is called the:

Correct Answer
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Tom has a PhD in history and teaches at the local college where he earns $75,000 a year.Truth be told,Tom loves teaching so much,he would gladly do it for $45,000.Which of the following can be said?

Correct Answer
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A monopsony is characterized as a market which has:

Correct Answer
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When a rare skill contributes to the production of something that consumers value highly the:

Correct Answer
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The determinants of labor demand include:

Correct Answer
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Which of the following would not be considered a "leisure" activity by economists?

Correct Answer
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Correct Answer
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In general,as wages increase:

Correct Answer
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The market labor-supply curve has all of the following properties except it:

Correct Answer
verified

For a competitive firm,the value of output _ and the marginal product of labor _ with each additional worker hired.

Correct Answer
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Farming in poor countries is considered to be:

Correct Answer
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In a competitive labor market,if the demand for labor increases,labor demand will shift to the:

Correct Answer
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Exam 16: The Factors of Production

If the graph shown is displaying a competitive labor market:

Correct AnswerverifiedShow Answer

A "company town" is one in which:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economists refer to the pattern of income that people derive from different factors of production as the:

Correct AnswerverifiedShow Answer

In a competitive labor market,if the supply of labor decreases,wages will:

Correct AnswerverifiedShow Answer

The factor of production called "labor" can be defined as the:

Correct AnswerverifiedShow Answer

The decrease in the quantity of labor supplied due to the greater demand for leisure caused by a higher income is called the:

Correct AnswerverifiedShow Answer

Tom has a PhD in history and teaches at the local college where he earns $75,000 a year.Truth be told,Tom loves teaching so much,he would gladly do it for $45,000.Which of the following can be said?

Correct AnswerverifiedShow Answer

A monopsony is characterized as a market which has:

Correct AnswerverifiedShow Answer

When a rare skill contributes to the production of something that consumers value highly the:

Correct AnswerverifiedShow Answer

The determinants of labor demand include:

Correct AnswerverifiedShow Answer

Which of the following would not be considered a "leisure" activity by economists?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In general,as wages increase:

Correct AnswerverifiedShow Answer

The market labor-supply curve has all of the following properties except it:

Correct AnswerverifiedShow Answer

For a competitive firm,the value of output ___________ and the marginal product of labor ___________ with each additional worker hired.

Correct AnswerverifiedShow Answer

Farming in poor countries is considered to be:

Correct AnswerverifiedShow Answer

In a competitive labor market,if the demand for labor increases,labor demand will shift to the:

Correct AnswerverifiedShow Answer

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For a competitive firm,the value of output _ and the marginal product of labor _ with each additional worker hired.

Correct Answer
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Correct Answer
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Correct Answer
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