history unit 6 textbook

Which of the following will inevitably cause a shift in the market demand for workers with a certain skill?

• An increase in the demand for goods produced by these workers

• A decrease in tax rates on the income of these workers

• An increase in the equilibrium wages received by these workers

• An increase in the supply of these workers

• The creation of a federally subsidized program to train new workers

If hiring an additional worker would increase a firm's total cost by less than it would increase its total revenue, the firm should

• Not hire the worker

• Hire the worker

• Hire the worker only if another worker leaves or is fired

• Hire the worker only if the worker can raise the firm's productivity

• Reduce the number of workers employed by the firm

The derived demand concept suggests that an increase in the demand for computers will:

• Increase the demand for computer software

• Decrease the demand for typewriters

• Increase the price of computers

• Increase the demand for microchip design engineers

• Increase the supply of computer manufacturers

A competitive firm produces a product using labor and plastic. The firm is initially in equilibrium. If the cost of plastic suddenly increases which of the following will occur?

• The demand curve for the product will shift to the left

• The firm's demand curve for plastic will shift to the left

• The firm will increase the number of units offered for sale

• The firm will definitely go out of business since competitive firms earn zero economic profits in equilibrium

• The firm's marginal costs will increase at each level

The marginal cost of producing the fourth unit of output is

• $4

• $11

• $19

• $32

• Impossible to determine from the given information

The total variable cost of producing five units of output is

• $6

• $11

• $30

• $43

• Impossible to determine from the given information

The profit-maximizing level of output for this firm is

• 2

• 3

• 4

• 5

• Impossible to determine from the given information

Which of the following explains why the marginal revenue product of an input in a perfectly competitive market decreases as a firm increases the quantity of an input used?

• The law of diminishing marginal utility

• The law of diminishing marginal returns

• The homogeneity of the product

• The free mobility of resources

• The total immobility of resources

Which of the following is not a characteristic of a monopsony?

• There is one firm hiring workers

• The firm must increase the wage to increase the quantity of labor supplied

• The MRC for the firm is upsloping, but the MRP for the market is perfectly elastic

• Workers are immobile

• The firm is a wage maker

If the minimum wage for teenagers increased to a rate higher than their market equilibrium wage, what would be the effect on their wage and employment?

• Increase, No effect

• Increase, Increase

• Increase, Decrease

• Decrease, Increase

• Decrease, Decrease