AP Micro - Unit 5 - Factor Market Supply and Demand

Front

If a large number of unskilled workers enter the labor force, which of the following will likely occur? supply of workers will increase; wage rate will increase, supply of workers will increase; wage rage will decrease, demand for workers will increase; wage rate will increase, demand for workers will decrease; wage rate will decrease

Back

supply of workers will increase; wage rage will decrease

Front

_______ ______ is the idea that the demand for a factor or resource is dependent on the demand that exists for the finished product that the resource is used to create.

Back

derived demand

Front

If worker productivity increases, which of the following will likely occur? Demand for workers will increase; wage rate will increase, Demand for workers will decrease; wage rate will increase, Demand for workers will increase; wage rate will decrease, Supply of workers will increase; wage rate will decrease

Back

Demand for workers will increase; wage rate will increase

Front

What is the marginal physical product of adding the 5th worker for a company that sells widgets for $5 per widget?

Back

The marginal physical product is the additional output produced by the 5th worker.

Front

What is the marginal revenue product of hiring the 3rd worker if a company sells widgets for $5 per widget?

Back

The marginal revenue product is $40.

Front

What formula tells us the quantity of labor that a firm should hire in order to maximize profits?

Back

MRP = MRC, MRP = MFC

Front

Which of the following will occur when wage rates decrease in a given labor market? Options: The supply of labor will decrease. The demand for labor will increase. The quantity supplied of labor will decrease. The supply of labor will decrease and the demand for labor will increase.

Back

The quantity supplied of labor will decrease.

Front

Professional athletes earn economic rent because they

Back

earn far more as professional athletes than they could earn in their next-best occupation