AP Microeconomics Unit 5 Factor markets

Front

If a large number of unskilled workers enter the labor market, which of the following is most likely to occur in the labor market for unskilled workers? Options: The supply curve will shift to the right and the wage rate will decrease. The supply curve will shift to the left and the wage rate will increase. The demand curve will shift to the left and the wage rate will decrease. The demand curve will shift to the right and the wage rate will increase.

Back

The supply curve will shift to the right and the wage rate will decrease.

Front

A profit-maximizing firm will continue to hire workers until the marginal revenue product of labor is equal to the:

Back

marginal resource cost

Front

Which of the following would cause the wage for computer programmers to increase? A decrease in the amount of physical capital per computer programmer, A decrease in the value that computer programmers place on leisure, A minimum wage set below the equilibrium wage in the market for computer programmers, An improvement in the education of computer programmers

Back

An improvement in the education of computer programmers

Front

If the wage rate decreases, which of the following is the most likely outcome? people increase the quantity of labor supplied; firms decrease the quantity of labor demanded, people decrease the quantity of labor supplied; firms increase the quantity of labor demanded, people decrease their leisure and increase their supply of labor, people decide to equalize their leisure and labor usage

Back

people decrease the quantity of labor supplied; firms increase the quantity of labor demanded

Front

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circular flow model?

Back

Product Market

Front

An increase in the demand for new houses will most likely cause which of the following? Increase in the supply of apartments,

1. Decrease in the price of nails

, Decrease in the price of houses, Increase in the demand for plumbers

Back

Increase in the demand for plumbers

Front

Which of the following is an example of derived demand? Options: Incomes increase causing the demand for luxury cars to decrease, The price of lumber decreases, so home builders demand more bricks, An increase in the demand for cars increases the demand for steel, An increase in the price of milk increases the demand for cereal

Back

An increase in the demand for cars increases the demand for steel

Front

A perfectly competitive firm would continue to purchase additional resources as long as the marginal revenue product is greater that the price of the resource.

Back

the marginal revenue product is greater that the price of the resource

Front

What is the marginal revenue product of labor (MRP_L) of the fourth worker in a firm producing novelty T-shirts in a perfectly competitive market where the price of a t-shirt is $10?

Back

$700

Front

If the wage rate decreases, which of the following is the most likely outcome? people increase the quantity of labor supplied; firms decrease the quantity of labor demanded, people decrease the quantity of labor supplied; firms increase the quantity of labor demanded, people decrease their leisure and increase their supply of labor, people decide to equalize their leisure and labor usage

Back

people decrease the quantity of labor supplied; firms increase the quantity of labor demanded