Economics Chapter 19 Points Question Answer Decrease The Demand For

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When a firm is a perfect competitor in the product market, its demand curve for

labor will ________ as the ________ declines as additional workers are hired.

75. Multiple Choice: Suppose all perfectly competitive con...

Question Suppose all perfectly competitive construction firms are hiring the profit-maximizing

quantity of labor and capital and are paying their workers $5 per hour. The

government imposes a minimum wage of $6 per hour. Then:

76. Multiple Choice: A firm‘s demand curve for labor is:

Question A firm’s demand curve for labor is:

77. Multiple Choice: The quantity demanded of labor will d...

Question The quantity demanded of labor will decrease if:

Points: 0

78. Multiple Choice: A determinant of the demand for a fac…

Question A determinant of the demand for a factor of production is the:

79. Multiple Choice: Which of the following statements is …

Question Which of the following statements is true?

80. Multiple Choice: If the marginal product is ________, …

Question If the marginal product is ________, the value of marginal product must be

________.

Points: 0

81. Multiple Choice: A firm‘s demand curve for labor is:

Question A firm’s demand curve for labor is:

82. Multiple Choice: A profit-maximizing firm will hire wo...

Question A profit–maximizing firm will hire workers up to the quantity of labor where:

83. Multiple Choice: If a firm hires labor such that W >…

Question If a firm hires labor such that W > VMPL, then profit:

84. Multiple Choice: If a firm hires labor such that W <…

Question If a firm hires labor such that W < VMPL, then profit:

Points: 0

85. Multiple Choice: If a firm hires labor and with its cu…

Question If a firm hires labor and with its current employees W = VMPL, then profit:

86. Multiple Choice: Which of the following statements is …

Question Which of the following statements is true?

87. Multiple Choice: A firm‘s demand curve for an input in…

Question A firm’s demand curve for an input in a perfectly competitive market is the

downward-sloping portion of its:

88. Multiple Choice: If the wage rate rises, firms will fi...

Question If the wage rate rises, firms will find that:

Points: 0

89. Multiple Choice: Suppose the competitive labor market ...

Question Suppose the competitive labor market for plumbers is in equilibrium. Which of the

following might decrease the wage for plumbers?

90. Multiple Choice: An increase in the market demand for ...

Question An increase in the market demand for electricians might occur if:

91. Multiple Choice: Benny employs people to sell candy ba…

Question Benny employs people to sell candy bars at intersections. The marginal product of

the last worker Benny hired is 20 candy bars per hour. Benny pays $7 per worker

per hour and sells the candy bars for $1 each. If the price of candy bars rises to $2,

then the:

Points: 0

92. Multiple Choice: Phil’s Copy Studio pays its workers $...

Question Phil’s Copy Studio pays its workers $60 per day and sells poster–size copies for

$10 per print. If the market wage rises to $70, what happens to Phil’s labor

demand?

93. Multiple Choice: Phil’s Copy Studio pays its workers $...

Question Phil’s Copy Studio pays its workers $60 per day and sells poster–size copies for

$10 per print. Now suppose during the holiday season the price of poster-size

copies increases to $12. What happens to the labor demand during the holiday

season?

94. Multiple Choice: The government increases the sales ta...

Question The government increases the sales tax on all goods. The government does not

change the tax on income earned from labor. What happens in the market for

labor?

Points: 0

95. Multiple Choice: Over the past several years, the dema...

Question Over the past several years, the demand for phone operators has fallen

dramatically. Which of the following would be a reason for this development?

96. Multiple Choice: Labor with a particular skill level a...

Question Labor with a particular skill level and training is used in only two industries: grape

cultivation and cranberry cultivation. Which of the following is likely to cause an

increase in the demand for this type of labor?

97. Multiple Choice: A factor demand curve will shift beca...

Question A factor demand curve will shift because of:

98. Multiple Choice: There will be an increase in the fact...

Question There will be an increase in the factor demand because of a(n):

Points: 0

99. Multiple Choice: A factor demand curve will shift to t...

Question A factor demand curve will shift to the left because of:

100. Multiple Choice: An increase in the demand for autowor...

Question An increase in the demand for autoworkers may come about because of:

101. Multiple Choice: An increase in the demand for autowor...

Question An increase in the demand for autoworkers may come about because of all of the

following except a(n):

102. Multiple Choice: A decrease in the demand for pastry c...

Points: 0

Question A decrease in the demand for pastry chefs may come about because of an:

103. Multiple Choice: An increase in the demand for constru...

Question An increase in the demand for construction workers may come about because of

a(n):

104. Multiple Choice: A shift in demand for a given factor …

Question A shift in demand for a given factor of production will not occur if:

105. Multiple Choice: A firm‘s demand curve for labor will ...

Question A firm’s demand curve for labor will shift because of:

Points: 0

106. Multiple Choice: According to the ________, in a perfe…

Question According to the ________, in a perfectly competitive economy each factor of

production is paid its equilibrium value of the marginal product.

107. Multiple Choice: Oscar‘s Flower Shop maximizes profits...

Question Oscar‘s Flower Shop maximizes profits by hiring four workers in a perfectly

competitive labor market. The workers and their VMPLs are Noe, $40; Barbara,

$35; Calvin, $27; and Diana, $15. Which of the following statements is true?

108. Multiple Choice: An important assumption underlying th...

Question An important assumption underlying the marginal productivity theory of income

distribution is that:

109. Multiple Choice: The marginal productivity theory of i...

Question The marginal productivity theory of income distribution says that:

Points: 0

110. Multiple Choice: The labor demand curve in a perfectly…

Question The labor demand curve in a perfectly competitive factor market is the horizontal

sum of all firms‘:

111. Multiple Choice: Figure: Equilibrium in the Labor Mark…

Question Figure: Equilibrium in the Labor Market

Reference: Ref 19-3

(Figure: Equilibrium in the Labor Market) In the figure Equilibrium in the Labor

Market, an increase in the productivity of labor, when everything else stays the

same, will lead to a(n) ________ in the equilibrium quantity of labor and a(n)

________ in the equilibrium price of labor.

Points: 0

112. Multiple Choice: Figure: Equilibrium in the Labor Mark…

Question Figure: Equilibrium in the Labor Market

Reference: Ref 19-3

(Figure: Equilibrium in the Labor Market) In the figure Equilibrium in the Labor

Market, a decrease in the price of the good produced, when everything else stays

the same, will lead to a(n) ________ in the equilibrium quantity of labor and a(n)

________ in the equilibrium price of labor.

113. Multiple Choice: Figure: Equilibrium in the Labor Mark…

Question

Points: 0

Figure: Equilibrium in the Labor Market

Reference: Ref 19-3

(Figure: Equilibrium in the Labor Market) In the figure Equilibrium in the Labor

Market, a decrease in population that decreases the number of workers, when

everything else stays the same, will lead to a(n) ________ in the equilibrium

quantity of labor and a(n) ________ in the equilibrium price of labor.

114. Multiple Choice: Reference: Ref 19-4 (Table: Total Pr…

Question

Reference: Ref 19-4

(Table: Total Product of Labor at Debbie’s Bakery) Debbie owns a bakery and can

hire workers to produce cakes selling in a competitive output market at $10 each.

The table Total Product of Labor at Debbie’s Bakery shows the relation between the

number of workers and the number of cakes produced. What is the value of the

marginal product for the fourth worker?

Answer

Points: 0

115. Multiple Choice: Reference: Ref 19-4 (Table: Total Pr…

Question

Reference: Ref 19-4

(Table: Total Product of Labor at Debbie’s Bakery) Debbie owns a bakery and can

hire workers to produce cakes selling in a competitive output market at $10 each.

The table Total Product of Labor at Debbie’s Bakery shows the relation between the

number of workers and the number of cakes produced. If Debbie must pay each

worker a competitive market wage of $40 per day, how many workers will she hire

to maximize profit?

116. Multiple Choice: Reference: Ref 19-4 (Table: Total Pr…

Question

Points: 0

Reference: Ref 19-4

(Table: Total Product of Labor at Debbie’s Bakery) Debbie owns a bakery and can

hire workers to produce cakes selling in a competitive output market at $8 each.

The table Total Product of Labor at Debbie’s Bakery shows the relation between the

number of workers and the number of cakes produced. Debbie must pay each

worker a competitive market wage of $45 per day. How many workers will she hire

to maximize profit?

117. Multiple Choice: Reference: Ref 19-4 (Table: Total Pr…

Question

Points: 0

Reference: Ref 19-4

(Table: Total Product of Labor at Debbie’s Bakery) Debbie owns a bakery and can

hire workers to produce cakes selling in a competitive output market at $10 each.

The table Total Product of Labor at Debbie’s Bakery shows the relation between the

number of workers and the number of cakes produced. Debbie must pay each

worker a competitive market wage of $30 per day. Now suppose the government

imposes a minimum wage law that all bakeries must pay no less than $50 per day.

How will this affect her profit–maximizing hiring decision?

118. Multiple Choice: Reference: Ref 19-5 (Table: Workers …

Question

Points: 0

Reference: Ref 19-5

(Table: Workers and Corn Output) Laura is a price-taking farmer who produces

corn. Assume the wage rate for workers is $130 and the price per bushel of corn is

$10. The table Workers and Corn Output shows Laura‘s production function.

Suppose Laura is employing two workers. If she adds the third worker, her profits

will:

119. Multiple Choice: Reference: Ref 19-5 (Table: Workers …

Question

Reference: Ref 19-5

(Table: Workers and Corn Output) Laura is a price-taking farmer who produces

corn. Assume the wage rate for workers is $125 and the price per bushel of corn is

$10. The table Workers and Corn Output shows Laura‘s production function. To

maximize profits Laura should employ ________ workers.

Points: 0

120. Multiple Choice: Reference: Ref 19-5 (Table: Workers …

Question

Reference: Ref 19-5

(Table: Workers and Corn Output) Laura is a price-taking farmer who produces

corn. Assume the wage rate for workers is $125 and the price per bushel of corn is

$10. The table Workers and Corn Output shows Laura‘s production function.

Suppose Laura is employing seven workers. If she lets the seventh worker go and

reduces employment to six workers, her profits will:

121. Multiple Choice: Reference: Ref 19-5 (Table: Workers …

Question

Points: 0

Reference: Ref 19-5

(Table: Workers and Corn Output) Laura is a price-taking farmer who produces

corn. Assume the wage rate for workers is $250 and the price per bushel of corn is

$20. The table Workers and Corn Output shows Laura‘s production function. Laura

should hire ________ workers to maximize profits.

122. Multiple Choice: Reference: Ref 19-5 (Table: Workers …

Question

Reference: Ref 19-5

(Table: Workers and Corn Output) Laura is a price-taking farmer who produces

corn. The table Workers and Corn Output shows her production function. Suppose

Laura acquires more land and as a result the output that can be produced by any

given number of workers doubles. If the wage is $130 and the price per bushel of

corn is $10, Laura should hire ________ workers to maximize profits.

Points: 0

123. Multiple Choice: Reference: Ref 19-6 (Table: Employme…

Question

Reference: Ref 19-6

(Table: Employment and Output) In the table Employment and Output, if the price

of a bushel of wheat is $10, then the value of the marginal product of the third

worker is:

124. Multiple Choice: Reference: Ref 19-6 (Table: Employme…

Question

Points: 0