Question 1

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.

Accepted Answer

A) True 
 B)False

Question 2

What is the equilibrium rental income paid to landowners at any point in time

Accepted Answer

A)  the purchase price of land
B)  the value of the marginal product of land
C)  the marginal product of land
D)  the wage paid to labourers of landE) None of the above
F) A) and B)

Question 3

Scenario 18-3
In 2015, Syria experienced civil unrest that sent thousands of refugees across the Aegean Sea to Greece where they sought relief from the fighting.
-Refer to Scenario 18-3.In what way did the Syrian civil war probably affect Greek labour markets

Accepted Answer

A)  Total employment in Greece decreased.
B)  Wages in Greece increased.
C)  The marginal product of labour in Greece decreased.
D)  Fewer Greeks were able to find work.E) None of the above
F) A) and B)

Question 4

Table 18-1
 
-Refer to Table 18-1.What is the marginal product of the fifth worker

Accepted Answer

A)  20
B)  40
C)  60
D)  100E) C) and D)
F) None of the above

Question 5

Suppose medical research provides evidence that eating coconuts provides far greater health benefits than was previously thought.Which result would the increase in the demand for coconuts have

Accepted Answer

A)  It increases the marginal product of coconut pickers for any given number of coconut pickers.
B)  It increases the value of the marginal product of coconut pickers for any given number of coconut pickers.
C)  It increases the supply of coconut pickers.
D)  It increases the minimum wage for workers in general.E) A) and B)
F) None of the above

Question 6

Scenario 18-1
Madison Kelp owns three boats, which participate in commercial fishing for fresh Pacific salmon off the coast of British Columbia.As part of her business, she hires a captain and several crewmembers for each boat.In the market for fresh Pacific salmon, there are thousands of firms like Madison's.While Madison usually catches a significant number of fish each year, her contribution to the entire harvest of salmon is negligible relative to the size of the market.
-Refer to Scenario 18-1.According to the labour market theory,which one of Madison's incentives does her demand for crewmembers and her supply of fresh Pacific salmon result from

Accepted Answer

A)  intrinsic desire to hire crewmembers
B)  primary goal of maximizing profit
C)  altruistic motives to provide fresh salmon to consumers
D)  desire to supply fresh salmon to local restaurantsE) B) and C)
F) A) and D)

Question 7

When firms are able to increase the amount of physical capital available to workers,what will occur

Accepted Answer

A)  The marginal product of labour will decrease.
B)  The profits of the firm will increase.
C)  The value of the marginal product of labour will increase.
D)  The final product price will increase.E) All of the above
F) A) and D)

Question 8

What is the difference between monopoly and monopsony

Accepted Answer

A)  The term "monopoly" refers to either a market with one buyer or to a market with one seller, while the term "monopsony" refers to a market with more than one buyer and seller.
B)  The term "monopoly" refers to a market with one buyer, while the term "monopsony" refers to a market with one seller.
C)  The term "monopsony" refers to a market with one buyer, while the term "monopoly" refers to a market with one seller.
D)  The term "monopsony" refers to either a market with one buyer or to a market with one seller, while the term "monopoly" refers to a market with more than one buyer and seller.E) A) and B)
F) B) and D)

Question 9

What does a profit-maximizing competitive firm experience when the marginal product of labour is diminishing

Accepted Answer

A)  a perfectly inelastic supply of labour
B)  a perfectly elastic supply of labour
C)  a downward-sloping demand for labour
D)  an upward-sloping demand for labourE) B) and D)
F) A) and D)

Question 10

What is a result of immigration of workers into Canada

Accepted Answer

A)  an increase in the demand for labour in Canada
B)  a decrease in the demand for labour in Canada
C)  an increase in the supply of labour in Canada
D)  a decrease in the supply of labour in CanadaE) B) and D)
F) None of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Average productivity can be measured as total output divided by total units of labour.

Accepted Answer

A) True 
 B)False

Question 13

What is diminishing marginal product closely related to

Accepted Answer

A)  diminishing average cost
B)  diminishing variable cost
C)  increasing marginal cost
D)  increasing total costE) C) and D)
F) A) and B)

Question 14

Given that wheat is an important ingredient in bread,what can we say about the demand of wheat

Accepted Answer

A)  The demand of wheat is derived from consumers' choices, which determine the demand for bread.
B)  The demand for wheat is derived from firms' choices, which determine the supply of bread.
C)  The demand for wheat and the demand for bread are both derived demands.
D)  Neither the demand for wheat nor the demand for bread is a derived demand.E) A) and D)
F) None of the above

Question 15

When does the labour supply curve shift

Accepted Answer

A)  when employers need to hire more people
B)  when employers develop new technology
C)  when new workers enter the labour market
D)  when workers become more productiveE) None of the above
F) All of the above

Question 16

A competitive firm will hire workers up to the point at which the value of the marginal product of labour equals which of the following

Accepted Answer

A)  average total cost
B)  average variable cost
C)  wage
D)  price per unit of outputE) A) and D)
F) A) and C)

Question 17

How are owners of capital resources compensated

Accepted Answer

A)  according to the purchase price of the capital stock
B)  according to the marginal product of capital
C)  according to the value of the marginal product of capital
D)  according to the absolute level of production of final goods and servicesE) A) and B)
F) A) and C)

Question 18

Scenario 18-1
Madison Kelp owns three boats, which participate in commercial fishing for fresh Pacific salmon off the coast of British Columbia.As part of her business, she hires a captain and several crewmembers for each boat.In the market for fresh Pacific salmon, there are thousands of firms like Madison's.While Madison usually catches a significant number of fish each year, her contribution to the entire harvest of salmon is negligible relative to the size of the market.
-Refer to Scenario 18-1.Based on the given information,what is likely the role that Madison's firm plays over wages to crewmembers on the labour market and the price of salmon on the salmon market

Accepted Answer

A)  Madison's firm is a price taker on the salmon market but a wager setter on the labour market.
B)  Madison's firm is a price setter on the salmon market but a wager taker on the labour market.
C)  Madison's firm is a price setter on the salmon market and a wager setter on the labour market.
D)  Madison's firm is a price taker on the salmon market and a wager taker on the labour market.E) None of the above
F) A) and B)

Question 19

In the Canadian economy,what factor of production is considered to be the most important in terms of the magnitude of income earned by that factor of production

Accepted Answer

A)  land
B)  labour
C)  profit
D)  capitalE) A) and C)
F) A) and D)

Question 20

Figure 18-1
The figure represents the value of marginal product for a firm that sells its product in a competitive market.
 
-Refer to Figure 18-1.The shape of the curve suggests the presence of which of the following

Accepted Answer

A)  increased productivity with increased labour
B)  diminishing returns to scale
C)  increasing marginal utility
D)  diminishing marginal productE) A) and C)
F) B) and C)

Exam 18: The Markets for the Factors of Production

Suppose medical research provides evidence that eating coconuts provides far greater health benefits than was previously thought.Which result would the increase in the demand for coconuts have

Correct Answer
verified

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.

Correct Answer
verified

Given that wheat is an important ingredient in bread,what can we say about the demand of wheat

Correct Answer
verified

What is diminishing marginal product closely related to

Correct Answer
verified

Correct Answer
verified

Scenario 18-3 In 2015, Syria experienced civil unrest that sent thousands of refugees across the Aegean Sea to Greece where they sought relief from the fighting. -Refer to Scenario 18-3.In what way did the Syrian civil war probably affect Greek labour markets

Correct Answer
verified

A competitive firm will hire workers up to the point at which the value of the marginal product of labour equals which of the following

Correct Answer
verified

What is the equilibrium rental income paid to landowners at any point in time

Correct Answer
verified

Table 18-1 -Refer to Table 18-1.What is the marginal product of the fifth worker

Correct Answer
verified

When does the labour supply curve shift

Correct Answer
verified

How are owners of capital resources compensated

Correct Answer
verified

Average productivity can be measured as total output divided by total units of labour.

Correct Answer
verified

Figure 18-1 The figure represents the value of marginal product for a firm that sells its product in a competitive market. -Refer to Figure 18-1.The shape of the curve suggests the presence of which of the following

Correct Answer
verified

What is a result of immigration of workers into Canada

Correct Answer
verified

When firms are able to increase the amount of physical capital available to workers,what will occur

Correct Answer
verified

What does a profit-maximizing competitive firm experience when the marginal product of labour is diminishing

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

What is the difference between monopoly and monopsony

Correct Answer
verified

In the Canadian economy,what factor of production is considered to be the most important in terms of the magnitude of income earned by that factor of production

Correct Answer
verified

Exam 18: The Markets for the Factors of Production

Suppose medical research provides evidence that eating coconuts provides far greater health benefits than was previously thought.Which result would the increase in the demand for coconuts have

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Given that wheat is an important ingredient in bread,what can we say about the demand of wheat

Correct AnswerverifiedShow Answer

What is diminishing marginal product closely related to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Scenario 18-3 In 2015, Syria experienced civil unrest that sent thousands of refugees across the Aegean Sea to Greece where they sought relief from the fighting. -Refer to Scenario 18-3.In what way did the Syrian civil war probably affect Greek labour markets

Correct AnswerverifiedShow Answer

A competitive firm will hire workers up to the point at which the value of the marginal product of labour equals which of the following

Correct AnswerverifiedShow Answer

What is the equilibrium rental income paid to landowners at any point in time

Correct AnswerverifiedShow Answer

Table 18-1 -Refer to Table 18-1.What is the marginal product of the fifth worker

Correct AnswerverifiedShow Answer

When does the labour supply curve shift

Correct AnswerverifiedShow Answer

How are owners of capital resources compensated

Correct AnswerverifiedShow Answer

Average productivity can be measured as total output divided by total units of labour.

Correct AnswerverifiedShow Answer

Figure 18-1 The figure represents the value of marginal product for a firm that sells its product in a competitive market. -Refer to Figure 18-1.The shape of the curve suggests the presence of which of the following

Correct AnswerverifiedShow Answer

What is a result of immigration of workers into Canada

Correct AnswerverifiedShow Answer

When firms are able to increase the amount of physical capital available to workers,what will occur

Correct AnswerverifiedShow Answer

What does a profit-maximizing competitive firm experience when the marginal product of labour is diminishing

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the difference between monopoly and monopsony

Correct AnswerverifiedShow Answer

In the Canadian economy,what factor of production is considered to be the most important in terms of the magnitude of income earned by that factor of production

Correct AnswerverifiedShow Answer

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