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Question;Factor Markets;1. What causes the labor demand;curve to shift?;(i) changes in productivity;(ii) changes in wages;(iii) changes in output prices;a. (i) and (ii) b. (ii) and (iii);c. (i) and (iii) d. All of the above are correct.;2. If consumers demand more;genetically engineered foods, then the value of genetic engineers;marginal product of labor will;a. rise. b. fall. c. remain;unchanged. d. rise or fall, either is possible.;3. Charles owns one of the many;bakeries in New York City. Which of the following events will lead;to a decrease in Charles's demand;for the services of bakers?;a. Hollywood glamorization of a;new movie about a baker leads hundreds of high-school;students in New York City to;apply for a job at Dan's.;b. The price of baked goods;falls.;c. The local bakers form a union.;d. All of the above are correct.;4. Aurora Custom Cabinets;produces and sells custom kitchen cabinets. The firm has determined that if;it hires 10 workers, it can;produce 4 sets of cabinets per day. If it hires 11 workers, it can;produce 4.2 sets of cabinets per;day. It sells each set of cabinets for $2,000, and it pays each of;its workers $200 per day.;a. For the 11th worker, the value;of the marginal product of labor is $500.;b. For the 11th worker, the;marginal revenue product is $400.;c. The firm is maximizing its;profit.;d. If the firm is employing 11;workers, then its profit would increase if it cut back to 10;workers.;5. For a competitive;profit-maximizing firm, the demand curve for labor will shift in response to a;change in the;a. wage rate. b. quantity of;labor demanded.;c. price of the product that the;firm sells. d. All of the above are correct.;6. Suppose that eight workers can;manufacture 70 radios per day, and nine workers can manufacture;90 radios per day. If radios can;be sold for $10 each, the value of marginal product of the ninth;worker is;a. 20 radios. b. 90 radios. c.;$200. d. $900.;7. When labor is the only input a;firm uses, the marginal cost of a unit of output can be defined as;a. marginal revenue multiplied by;wage.;b. marginal product of labor;multiplied by wage.;c. wage divided by marginal;product of labor.;d. marginal product of labor;divided by wage.;8. Sally runs a hair styling;salon. Sally is a profit-maximizing owner whose firm operates in a;competitive market. The marginal;cost of a haircut is $7. What is the maximum wage that Sally;will pay her stylists?;a. less than $7 per haircut;b. $7 per haircut;c. more than $7 haircut;d. There is insufficient;information to answer this question.;9. If the wage exceeds the value;of the marginal product of labor, then hiring another worker;a. decreases the firm's total;revenue. b. increases the firm's profit.;c. increases the firm's total;cost. d. All of the above are correct.;10. What does an upward-sloping;labor supply curve mean?;a. It means that workers prefer;to buy more leisure time when their incomes increase.;b. It means that workers prefer;to supply less labor when wages are high.;c. It means that an increase in;the opportunity cost of leisure leads workers to increase the;quantity of labor they supply.;d. All of the above are correct.;11. If workers respond to an;increase in the opportunity cost of leisure by taking less leisure, then their;labor supply curve is;a. horizontal. b. vertical. c.;downward sloping. d. upward sloping.;12. If workers respond to an;increase in the opportunity cost of leisure by taking more leisure, then;their labor supply curve is;a. upward sloping. b. downward;sloping. c. horizontal. d. vertical.;13. Which of the following;statements is correct? An individual worker's labor supply curve;a. can never slope downward.;b. slopes downward if that person;responds to a higher wage by taking fewer hours of leisure;per week.;c. slopes downward if that person;responds to a higher opportunity cost of leisure by working;fewer hours per week.;d. slopes upward if that person;works the same number of hours per week, regardless of the;opportunity cost of leisure.;14. The following table shows the;number of calculators that can be assembled per week by various;numbers of workers. If the price;per calculator in a perfectly competitive product market is $20;how many workers would the firm;employ if the weekly wage rate is $1000?;Quantity of Number of Calculators;Labor Per Week;0 0;1 60;2 160;3 240;4 280;5 300;a. 1 b. 2 c. 3 d. 4;15. An increase in the value of;the marginal product of labor has the effect of increasing the;a. demand for labor. b. wage.;c. quantity of labor employed. d.;All of the above are correct.;16. Suppose medical research;provides evidence that eating bananas provides far greater health;benefits than was previously;thought. The resulting increase in the demand for bananas;a. increases the marginal product;of banana pickers for any given number of banana pickers.;b. increases the value of the;marginal product of banana pickers for any given number of;banana pickers.;c. increases the supply of banana;pickers.;d. All of the above are correct.;17. Suppose that a rare virus;transmitted by mosquitoes, infects all the people who live in Minnesota.;The virus is fatal to all;blondes, but everyone else is unaffected. Assuming that land and labor;are complements in a farming;production function, what would happen to the wages earned by;workers and the rents earned by;landowners?;a. Both wages and rents would;increase.;b. Both wages and rents would;decrease.;c. Wages would increase, and;rents would decrease.;d. Wages would decrease, and;rents would increase.

 

Paper#44987 | Written in 18-Jul-2015

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