Front

The four principal classes of factors of production are: money, capital, land, and labor; money, capital, labor, and entrepreneurship; money, labor, land, and entrepreneurship; land, labor, capital, and entrepreneurship; land, labor, entrepreneurship, and money.

Back

land, labor, capital, and entrepreneurship

Front

Because it results from the demand for automobiles, the demand for automobile workers is a/an

Back

derived demand

Front

For a perfectly competitive firm in both the product market and the factor market, the demand curve for labor slopes downward due to

Back

diminishing marginal returns

Front

If marginal product is positive and falling as the firm hires more workers, then

Back

total product is rising at a decreasing rate

Front

Which of the following would shift the demand curve for labor to the right?
a decrease in the wage rate,
an increase in the wage rate,
an increase in labor productivity,
a decrease in the final price of the product produced,
a decrease in the availability of physical capital per worker

Back

an increase in labor productivity

Front

Suppose a firm produces coffee mugs in a perfectly competitive output market. Which of the following would shift the firm’s demand curve for labor to the left? an increase in the demand for mugs, a decrease in the price of mugs, an increase in the price of mugs, an increase in the availability of physical capital per worker

Back

a decrease in the price of mugs

Front

The supply curve for labor may shift to the left due to: an increase in wealth, an increase in the wage rate due to the income effect, a decrease in the wage rate due to the income effect, an increase in the wage rate due to the substitution effect.

Back

an increase in wealth

Front

Compared to a competitive labor market, a firm with monopsony power in the labor market would pay a

Back

lower wage rate and hire fewer workers

Front

If a former monopolist in the product market begins to face competition as firms enter the market, the firm’s demand curve for labor would

Back

become more elastic

Front

According to marginal productivity theory, a factor of production will be paid based on the

Back

increase in revenue generated by the last unit of the factor employed in the market