Question 1

The marginal product generated by an additional unit of input multiplied by the price of the output gives us the:

Accepted Answer

A)  value of the marginal product.
B)  marginal input profit.
C)  production function.
D)  production price.E) B) and C)
F) C) and D)

Question 2

In the graph of supply and demand in the market for labor:

Accepted Answer

A)  individuals make up the demand curve.
B)  the equilibrium price of labor is the price of the output.
C)  firms are the demanders.
D)  equilibrium is rarely achieved.E) B) and D)
F) All of the above

Question 3

The market labor supply and labor demand curves intersect:

Accepted Answer

A)  at the equilibrium wage.
B)  above equilibrium price.
C)  at the number of unemployed people in the market.
D)  All of these are true.E) C) and D)
F) B) and D)

Question 4

If Tiago receives a pay raise and the price effect outweighs the income effect on his labor supply decisions, he will:

Accepted Answer

A)  work more hours.
B)  work less hours.
C)  work the same hours no matter what.
D)  quit and not work at all.E) None of the above
F) A) and B)

Question 5

If the graph shown displays a competitive labor market:

Accepted Answer

A)  Q* represents total employment in the market.
B)  S represents the workers' willingness to supply labor at every wage.
C)  P* represents the equilibrium wage.
D)  All of these statements are true.E) All of the above
F) A) and D)

Question 6

When considering the factor distribution of income, which of the following would go to owners of physical capital?

Accepted Answer

A)  Corporate profits
B)  Proprietor income
C)  Taxes
D)  WagesE) All of the above
F) A) and C)

Question 7

The more human capital workers have, the:

Accepted Answer

A)  less productive they are.
B)  more productive they are.
C)  lower the value of their marginal product.
D)  more technology they will require for their job.E) B) and D)
F) None of the above

Question 8

A monopsony is a market that has:

Accepted Answer

A)  many buyers and one seller.
B)  one buyer and many sellers.
C)  many buyers and many sellers.
D)  one buyer and one seller.E) A) and B)
F) A) and C)

Question 9

If the demand for oranges falls, it is highly likely that the demand for:

Accepted Answer

A)  orange juice will fall.
B)  orange grove workers will fall.
C)  apples will increase.
D)  apple orchard workers will decrease.E) A) and B)
F) A) and C)

Question 10

If Silvia receives a pay cut and the income effect outweighs the price effect on her labor supply decision, she will:

Accepted Answer

A)  work more hours.
B)  work less hours.
C)  work the same hours no matter what.
D)  quit and not work at all.E) A) and D)
F) A) and C)

Question 11

Enzo has been offered two jobs. As a harvester at the local vineyard he would earn $9 an hour, and as a bagger at the grocery store he would earn $8 an hour. The benefits of working each job are the same. The opportunity cost of working at the grocery store is _______ per hour.

Accepted Answer

A)  more than $9
B)  less than $9
C)  exactly $9
D)  exactly $8E) A) and C)
F) A) and B)

Question 12

If it is a cultural norm to practice an afternoon "siesta" (nap) , then we would expect that labor _______ in this culture will be relatively _______ at any wage.

Accepted Answer

A)  demand; greater
B)  demand; lower
C)  supply; greater
D)  supply; lowerE) B) and C)
F) A) and D)

Question 13

In general, as wages go up:

Accepted Answer

A)  people are willing to work less.
B)  the opportunity cost of leisure goes up.
C)  the opportunity cost of leisure goes down.
D)  people will always work more.E) A) and D)
F) B) and D)

Question 14

The value of the marginal product is the:

Accepted Answer

A)  marginal product generated by an additional unit of input multiplied by the price of output.
B)  marginal revenue generated by an additional unit of output multiplied by the number of workers hired.
C)  additional inputs required to produce one more additional unit of output.
D)  average revenue generated by workers at a firm.E) None of the above
F) All of the above

Question 15

Which of the following is an example of human capital?

Accepted Answer

A)  Plumbing skills
B)  A wrench
C)  A manual on how to install a sink
D)  A wedding dressE) A) and B)
F) A) and C)

Question 16

More college graduates with engineering degrees will affect the labor market for engineers. With a(n) _______ in labor supply, we would expect wages to ______.

Accepted Answer

A)  decrease; decrease
B)  decrease; increase
C)  increase; increase
D)  increase; decreaseE) None of the above
F) B) and D)

Question 17

Enzo currently works two part-time jobs. As a harvester at the local vineyard he earns $9 an hour, and as a bagger at the grocery store he earns $8 an hour. The benefits of working each job are the same. When Enzo decides to work at the vineyard instead of the grocery store, this implies that his opportunity cost of doing so is _______ per hour.

Accepted Answer

A)  more than $8
B)  less than $8
C)  exactly $8
D)  more than $8.E) A) and C)
F) B) and D)

Question 18

Holding other things constant, diminishing marginal productivity eventually happens to:

Accepted Answer

A)  any input as more of the input is used.
B)  labor as more is used, but not to land or capital.
C)  capital inputs as more is used, but not to labor or land.
D)  all inputs, with the exception of land as more of those inputs are used.E) All of the above
F) None of the above

Question 19

The graph shown displays a competitive market that is currently offering a wage more than P*. Which of the following statements is true about this market?

Accepted Answer

A)  A surplus of workers will want to work at that wage.
B)  There will be no unemployment in the market.
C)  Firms will have a hard time finding workers.
D)  Equilibrium has been be achieved.E) A) and D)
F) B) and D)

Question 20

If the demand for baseballs increases, it is highly likely that the demand for:

Accepted Answer

A)  leather will increase.
B)  bats will decrease.
C)  soccer balls will rise.
D)  tennis balls will increase.E) None of the above
F) C) and D)

Exam 16: The Facts of Production

The market labor supply and labor demand curves intersect:

Correct Answer
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Correct Answer
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The marginal product generated by an additional unit of input multiplied by the price of the output gives us the:

Correct Answer
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If the demand for oranges falls, it is highly likely that the demand for:

Correct Answer
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In general, as wages go up:

Correct Answer
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If Silvia receives a pay cut and the income effect outweighs the price effect on her labor supply decision, she will:

Correct Answer
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If it is a cultural norm to practice an afternoon "siesta" (nap) , then we would expect that labor _ in this culture will be relatively _ at any wage.

Correct Answer
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The graph shown displays a competitive market that is currently offering a wage more than P*. Which of the following statements is true about this market?

Correct Answer
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The value of the marginal product is the:

Correct Answer
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Which of the following is an example of human capital?

Correct Answer
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Holding other things constant, diminishing marginal productivity eventually happens to:

Correct Answer
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More college graduates with engineering degrees will affect the labor market for engineers. With a(n) _ in labor supply, we would expect wages to .

Correct Answer
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A monopsony is a market that has:

Correct Answer
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The more human capital workers have, the:

Correct Answer
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When considering the factor distribution of income, which of the following would go to owners of physical capital?

Correct Answer
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In the graph of supply and demand in the market for labor:

Correct Answer
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If the demand for baseballs increases, it is highly likely that the demand for:

Correct Answer
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If the graph shown displays a competitive labor market:

Correct Answer
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If Tiago receives a pay raise and the price effect outweighs the income effect on his labor supply decisions, he will:

Correct Answer
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Enzo has been offered two jobs. As a harvester at the local vineyard he would earn $9 an hour, and as a bagger at the grocery store he would earn $8 an hour. The benefits of working each job are the same. The opportunity cost of working at the grocery store is _______ per hour.

Correct Answer
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Exam 16: The Facts of Production

The market labor supply and labor demand curves intersect:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The marginal product generated by an additional unit of input multiplied by the price of the output gives us the:

Correct AnswerverifiedShow Answer

If the demand for oranges falls, it is highly likely that the demand for:

Correct AnswerverifiedShow Answer

In general, as wages go up:

Correct AnswerverifiedShow Answer

If Silvia receives a pay cut and the income effect outweighs the price effect on her labor supply decision, she will:

Correct AnswerverifiedShow Answer

If it is a cultural norm to practice an afternoon "siesta" (nap) , then we would expect that labor _______ in this culture will be relatively _______ at any wage.

Correct AnswerverifiedShow Answer

The graph shown displays a competitive market that is currently offering a wage more than P*. Which of the following statements is true about this market?

Correct AnswerverifiedShow Answer

The value of the marginal product is the:

Correct AnswerverifiedShow Answer

Which of the following is an example of human capital?

Correct AnswerverifiedShow Answer

Holding other things constant, diminishing marginal productivity eventually happens to:

Correct AnswerverifiedShow Answer

More college graduates with engineering degrees will affect the labor market for engineers. With a(n) _______ in labor supply, we would expect wages to ______.

Correct AnswerverifiedShow Answer

A monopsony is a market that has:

Correct AnswerverifiedShow Answer

The more human capital workers have, the:

Correct AnswerverifiedShow Answer

When considering the factor distribution of income, which of the following would go to owners of physical capital?

Correct AnswerverifiedShow Answer

In the graph of supply and demand in the market for labor:

Correct AnswerverifiedShow Answer

If the demand for baseballs increases, it is highly likely that the demand for:

Correct AnswerverifiedShow Answer

If the graph shown displays a competitive labor market:

Correct AnswerverifiedShow Answer

If Tiago receives a pay raise and the price effect outweighs the income effect on his labor supply decisions, he will:

Correct AnswerverifiedShow Answer

Enzo has been offered two jobs. As a harvester at the local vineyard he would earn $9 an hour, and as a bagger at the grocery store he would earn $8 an hour. The benefits of working each job are the same. The opportunity cost of working at the grocery store is _______ per hour.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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If it is a cultural norm to practice an afternoon "siesta" (nap) , then we would expect that labor _ in this culture will be relatively _ at any wage.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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More college graduates with engineering degrees will affect the labor market for engineers. With a(n) _ in labor supply, we would expect wages to .

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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