Factor Markets

Front

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

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? Options: 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

Back

an increase in wealth

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

Front

If the price of a firm's product falls, the firm's demand for labor curve

Back

shifts leftward.

Front

If the cost of input increases to create a product, this will impact the labor market by

Back

shifting demand to the left