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Exam 18: The Markets for the Factors of Production

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Question 91

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Which of the following could increase the labor-supply curve for computer-repair technicians?

A) an increase in the wages paid to computer-repair technicians
B) an increase in immigration
C) a change in the work preferences of men, with more of them preferring to be stay-at-home fathers
D) an increase in the wages paid to television-repair technicians

E) A) and D)
F) None of the above

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Question 92

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Table 18-3 -Refer to Table 18-3. Which firm's production function exhibits positive but diminishing marginal product?

A) Firm A
B) Firm B
C) Firm C
D) Firm D

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

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Question 93

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Figure 18-7 -Refer to Figure 18-7. If the relevant labor supply curve is S2 and the current wage is W1,

The rental price of land is

A competitive firm sells its output for $60 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 20 units of output per day; the marginal product of the 11th worker is 16 units of output per day. The firm pays its workers a wage of $150 per day. For the 11th worker, the value of the marginal product of labor is

Figure 18-8 This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D₁ and D₂ are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. -Refer to Figure 18-8. What is measured along the vertical axis on the graph?

Which of the following events could increase the demand for labor?

Which of the following would shift a market labor supply curve to the right?

Figure 18-12. 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 18-12. What is the marginal product of the second mechanic?

In general, less productive workers are paid less than more productive workers.

Diminishing marginal product occurs when

A competitive, profit-maximizing pays its workers a wage of $294 per day. The marginal product of the last worker is 35 units of output. What is the firm's marginal cost of producing its last unit of output?

For competitive firms, the curve that represents the value of marginal product of labor is the same as the demand for labor curve.

The owners of capital resources are compensated according to the

Figure 18-4 The graph below illustrates the market for nurses who work in doctors' offices. -Refer to Figure 18-4. Each August many high school and college students visit a doctor's office to have a sports physical. If the price of sports physicals falls, what happens in the market for nurses?

Consider the labor market for computer programmers. Because of the dot.com boom in the late 1990s, a lot of workers went to school to learn how to write computer code for one of thousands of new dot.com companies. However, when these computer programming students graduated the dot.com bust took place. The dot.com bust decreased the value of the marginal product of computer programmers. Holding all else equal what effect did these two circumstances have on the equilibrium quantity in the labor market for computer programmers?

A competitive, profit-maximizing firm hires workers up to the point where the

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

Suppose that a rare virus infects and kills a significant percentage of the population. 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?

Approximately how much of the income in the United States is earned by workers in the form of wages and fringe benefits?