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Exam 18: The Markets for the Factors of Production

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Question 121

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The substantial increases in output per worker over the last 50 or so years are largely explained by __________.

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technologi...

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Question 122

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Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. In the market for life guards the equilibrium wage

A) increases because the marginal productivity of life guards increases.
B) decreases because the marginal productivity of life guards decreases.
C) increases because the supply of life guards increases.
D) decreases because the supply of life guards decreases.

E) All of the above
F) A) and B)

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Question 123

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A change in the supply of one factor of production

Figure 18-4 The graph below illustrates the market for nurses who work in doctors' offices. -Refer to Figure 18-4. If the supply of medical supplies that nurses use when performing sports physicals increases, what happens in the market for nurses?

If a particular labor market were to convert from a competitive market to a monopsony, what effect would we expect on the number of workers hired? What effect would we expect on the wage paid to workers?

Which of the following events would shift a labor supply curve? (i) immigration of high-skilled workers (ii) immigration of low-skilled workers (iii) changes in the number of women willing to work full time

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. -Refer to Figure 18-1. If the shop charges $120 per repair and pays each of its mechanics a wage of $400 per day, then what is the marginal profit of the third mechanic?

Suppose a shift of the demand curve for strawberry pickers causes the equilibrium wage of strawberry pickers to increase by $2. The price of strawberries is $3 per pound before and after the shift. Does the shift increase the marginal product of the last picker hired, or does it decrease it? What is the amount of the increase or decrease?

Table 18-3 -Refer to Table 18-3. For Firm B, the marginal product of labor is

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. If Sam takes fewer hours of leisure in the winter than in the summer, we can assume that his labor supply curve for the range of earnings in this example

Competitive firms hire workers until the additional benefit they receive from the last worker hired is equal to (i) the additional cost of that worker. (ii) the wage paid to that worker. (iii) the marginal product of that worker.

Figure 18-2 The figure below shows the production function for a particular firm. -Refer to Figure 18-2. Suppose the firm pays a wage equal to $320 per unit of labor and sells its output at $15 per unit. How many units of labor should the firm hire to maximize profit?

Suppose that a new invention decreases the marginal productivity of labor, shifting labor demand to the left. Such an invention would be an example of

An increase in the supply of labor

Which of the following best describes the economy's stock of equipment and structures?

Fiona's hourly wage decreases from $10 to $8. Which of the following describes a consequence of the decrease in Fiona's wage?

If hiring more workers results in each additional worker contributing successively smaller amounts of output, then which of the following is present?

Which of the following would not shift a market labor supply curve to the right?

The opportunity cost of leisure is impossible to measure because we cannot measure leisure time in dollars.

Consider the labor market for heath care workers. Because of the aging population in the United States, the output price for health care services has increased. Holding all else equal, the equilibrium wage of health care employees would