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Exam 18: The Markets for the Factors of Production

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Question 211

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Which of the following would be an example of capital for a retail gasoline station? (i) the gas tanks and pumps (ii) the service attendants' time (iii) the plot of land on which the station sits

A) (i) only
B) (iii) only
C) (i) and (iii) only
D) (ii) and (iii) only

E) B) and C)
F) None of the above

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Question 212

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Along the horizontal axis of the production function we typically measure

A) revenue.
B) the marginal product of the input.
C) the quantity of input.
D) the quantity of output.

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

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Question 213

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Firms pay out a portion of their earnings in the form of interest and dividends, and those payments are a portion of the economy's capital income.

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?

Ellen receives a raise at her current part-time job from $8 to $10 per hour. If her labor supply curve is upward sloping, she will work fewer hours after receiving the pay raise.

Table 18-10 -Refer to Table 18-10. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. What is the marginal revenue product of the third worker?

Figure 18-10 -Refer to Figure 18-10. Which of the following would shift of the labor demand curve from D1 to D2?

Scenario 18-5 Suppose that workers from northern Minnesota, North Dakota, and Montana decide to emigrate to southern Canada. -Refer to Scenario 18-5. In the labor market in southern Canada, the equilibrium wage

Table 18-11 Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $2 each and pays the workers a wage of $325 per day. -Refer to Table 18-11. What is the fourth worker's marginal product of labor?

In the United States, technological advances help explain persistently rising employment in the face of rising wages.

The demand for computer programmers is inseparably tied to the supply of computer software.

Figure 18-3 -Refer to Figure 18-3. What is the marginal product of the fourth worker?

The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?

If the selling price of a bushel of cranberries rises, we would expect the demand for labor in the cranberry industry to

When we focus on the firm as a supplier of a good or a service, we assume that the firm is a profit maximizer. When we focus on the firm as a demander of labor, we assume that the firm's objective is to

Which of the following would decrease the demand for labor? (i) a decrease in the output price (ii) an increase in the output price (iii) a labor-saving technological advance (iv) a labor-augmenting technological advance

Suppose that the market for labor is initially in equilibrium. An increase in the price of output will cause the equilibrium wage

Tony is the owner of Tony's Taqueria. Tony is a profit­maximizing owner whose firm operates in a competitive market. An additional worker costs Tony $200 and has a marginal productivity of 40 tacos. Assuming no other variable costs, what is the marginal cost of a taco?

Christine works for a firm that makes tires for cars. How is Christine's wage affected if the price of tires decreases?

The idea that rational employers think at the margin is central to understanding how many units of labor they choose to employ.