Question 1

When individuals are debating whether to supply labor,they must think about:

Accepted Answer

A)  the cost in terms of forgone leisure.
B)  the benefit of more income for each hour worked.
C)  whether the benefits outweigh the costs.
D)  All of these statements are true.

Question 2

An efficiency wage is a wage that:

Accepted Answer

A)  is deliberately set above the market rate to increase worker productivity.
B)  the government sets deliberately above the market rate to increase equity.
C)  most unionized workers negotiate to get rid of.
D)  None of these statements is true.

Question 3

We can expect producers to pay:

Accepted Answer

A)  None of these statements is true.
B)  more for land with lower productivity.
C)  less for land with higher productivity.
D)  less for land with lower productivity.

Question 4

A market which consists of many sellers and only one buyer is called a:

Accepted Answer

A)  monopsony.
B)  monopoly.
C)  oligopoly.
D)  monopolistic competitor.

Question 5

An example of human capital is:

Accepted Answer

A)  physical strength.
B)  an eye for decorating and color.
C)  a PhD in chemistry.
D)  All of these are examples of human capital.

Question 6

The increase in output that is generated by an additional unit of input is called the:

Accepted Answer

A)  marginal product.
B)  input-output relationship.
C)  production function.
D)  resource product.

Question 7

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

Accepted Answer

A)  Hairstyling services
B)  Swimming instruction
C)  Physical therapy services
D)  All of these production processes are labor intensive.

Question 8

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-supply 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.

Question 9

The marginal product of any input into the production process:

Accepted Answer

A)  is the increase in output that is generated by an additional unit of input.
B)  is the decrease in input that is generated by an additional unit of output.
C)  is the constant ratio of inputs to outputs.
D)  None of these statements is true.

Question 10

An example of human capital is the ability to:

Accepted Answer

A)  write effectively.
B)  run fast.
C)  sharp shoot.
D)  All of these are examples of human capital.

Question 11

An individual labor-demand curve represents:

Accepted Answer

A)  a worker's decisions around how many hours to work at each alternative wage.
B)  the decisions of all workers around how many hours to work at each alternative wage.
C)  a firm's decisions around how many hours to hire at each alternative wage.
D)  the decisions of all firms around how many hours to work at each alternative wage.

Question 12

When the competitive firm's value of the marginal product of labor intersects the market-wage level,the firm:

Accepted Answer

A)  has found the profit-maximizing quantity of labor to hire.
B)  can increase its profits by hiring any amount less than this point.
C)  can increase its profits by hiring any amount greater than that point.
D)  None of these statements is true.

Question 13

For a competitive firm,the marginal revenue product is:

Accepted Answer

A)  always positive and nears zero as quantity increases.
B)  always negative and nears zero as quantity increases.
C)  zero when profits are maximized.
D)  None of these statements is true.

Question 14

Minimum wages:

Accepted Answer

A)  are a controversial topic.
B)  are needed to guarantee workers an acceptable standard of living.
C)  are a form of government interference in the free market.
D)  All of these statements could be considered true.

Question 15

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.

Question 16

The market labor-supply curve is:

Accepted Answer

A)  upward sloping.
B)  downward sloping.
C)  perfectly elastic.
D)  perfectly inelastic.

Question 17

A worker deciding how many hours to work can be represented:

Accepted Answer

A)  with an individual labor-supply curve.
B)  in the market labor-supply curve.
C)  with an individual labor-demand curve.
D)  in the market labor-demand curve.

Question 18

In the case of borrowing in capital markets,the rental price of capital is:

Accepted Answer

A)  the interest paid on loans.
B)  the equilibrium wage.
C)  the value of the expected flow of income gained from ownership.
D)  None of these statements is true.

Question 19

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.

Question 20

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

Accepted Answer

A)  the value of the marginal product is high.
B)  the marginal product is high.
C)  the marginal cost per unit is low.
D)  All of these statements are true.

Exam 16: The Factors of Production

An example of human capital is:

Correct Answer
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An efficiency wage is a wage that:

Correct Answer
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When individuals are debating whether to supply labor,they must think about:

Correct Answer
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An example of human capital is the ability to:

Correct Answer
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The market labor-supply curve is:

Correct Answer
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The marginal product of any input into the production process:

Correct Answer
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Minimum wages:

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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A market which consists of many sellers and only one buyer is called a:

Correct Answer
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Correct Answer
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An individual labor-demand curve represents:

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

Correct Answer
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A worker deciding how many hours to work can be represented:

Correct Answer
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The increase in output that is generated by an additional unit of input is called the:

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

Correct Answer
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We can expect producers to pay:

Correct Answer
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For a competitive firm,the marginal revenue product is:

Correct Answer
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When the competitive firm's value of the marginal product of labor intersects the market-wage level,the firm:

Correct Answer
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In the case of borrowing in capital markets,the rental price of capital is:

Correct Answer
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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-supply curve to shift:

Correct Answer
verified

Exam 16: The Factors of Production

An example of human capital is:

Correct AnswerverifiedShow Answer

An efficiency wage is a wage that:

Correct AnswerverifiedShow Answer

When individuals are debating whether to supply labor,they must think about:

Correct AnswerverifiedShow Answer

An example of human capital is the ability to:

Correct AnswerverifiedShow Answer

The market labor-supply curve is:

Correct AnswerverifiedShow Answer

The marginal product of any input into the production process:

Correct AnswerverifiedShow Answer

Minimum wages:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A market which consists of many sellers and only one buyer is called a:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An individual labor-demand curve represents:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A worker deciding how many hours to work can be represented:

Correct AnswerverifiedShow Answer

The increase in output that is generated by an additional unit of input is called the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

We can expect producers to pay:

Correct AnswerverifiedShow Answer

For a competitive firm,the marginal revenue product is:

Correct AnswerverifiedShow Answer

When the competitive firm's value of the marginal product of labor intersects the market-wage level,the firm:

Correct AnswerverifiedShow Answer

In the case of borrowing in capital markets,the rental price of capital is:

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-supply curve to shift:

Correct AnswerverifiedShow Answer

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