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WorksheetsUnit 5 Quiz
Total questions: 60
Worksheet time: 38mins
The supply of labour curve slopes _______
downward
upward
backward
frontward
The total numbers of people in an economy who are of working age and who are willing and able to work is called ________
demand for labour
labour
employers
supply of labour
Wages are determined by the interaction of ______
buyers and sellers
workers and employees
demand for labour and supply of labour
consumers and manufacturer
___________ is defined a market where employers and employees determine wage payment.
Capital market
Commodity market
Labour market
Foreign exchange market
Labour can be defined as ______
man-made goods used in production of goods and services
money used to purchase goods and services
all human efforts directed towards the production of goods and services
the human that co-ordinates all other factors of production.
In a free market economy who owns the resources?
state governments
the federal government
households
local governments
In what market are the factors of production bought and sold?
Product Market
Resource Market (AKA- Factor Market)
In what market do businesses sell goods and services to households?
Product Market
Factor Market
Resource Market
None of the above
What model shows how products, resources, and money flow in the economy?
Circular flow model
aggregate model
GDP output expenditure model
the Cobb-Douglas production function
Economists call a "Price Floor" deployed in a Labor Market a...
Maximum Price
Minimum Wage
Maximum Salary
Maximum Wage
True or False: In a Perfectly Competitive Labor Market, a profit-maximizing firm will employ workers at the Market Equilibrium Wage.
True
False
Not exactly true, but not entirely false
The graph on the left illustrates the number of products additional workers will make; the graph on the right illustrates how much money the business will make as a result of the work additional workers do.
The graph on the left illustrates how much money the business will make as a result of the work additional workers do; the graph on the right illustrates the number of products additional workers will make.
Trick Question. These two graphs are identical
The graph on the left is a Labor Market. The graph on the right is some other kind of market (who knows what other kind of market it is... it's a mystery).
Envelopes
Whatever good/service is being discussed in this graph
Workers hired (or "Work hours")
All of the above
The highest wage that a profit-maximizing firm will be willing to pay a worker will be equal to the...
Marginal Revenue Product provided by that worker.
Minimum amount of money that worker requires to support themselves and/or their family.
Maximum amount of money the business can pay to its workers without going bankrupt
Additional cost of buying one more resource used for production
Demand
Marginal Factor Cost
Marginal Product of Labor
Monopsony
P*
W
S
PK
In most markets we've examined this semester, finding the intersection of supply & demand allowed us to find the "equilibrium price." In labor markets, it allows us to find the "equilibrium _____."
Quantity
Maximizing Quantity
Maximizing Price
Wage
In the labor market for engineers, an increase in the number of college graduates with engineering degrees will
shift the supply curve right, lowering engineer wages
shift the demand curve right, raising engineer wages
shift the supply curve left, raising engineer wages
shift the demand curve left, lowering engineer wages
In a perfectly competitive labor market
the firm is a wage maker
the firm is a wage taker
workers are paid a higher rate when the firm expands production
workers wages are set by the firm
Marginal revenue product is defined as the
change in income that occurs when an individual works additional hours
change in total revenue that occurs when one additional unit of the good is produced
change in total revenue that occurs when one additional unit of an input is employed
total revenue divided by the quantity of labor employed
change in total cost that occurs when one additional unit of an input is employed
Which of the following is a firm’s demand for labor?
the firm’s marginal factor cost (MFC) curve
the firm’s long-run average total cost (LRATC) curve
the firm’s marginal revenue product of labor (MRPL) curve
the firm’s marginal revenue (MR) curve
the firm’s marginal revenue product of capital (MRPK) curve
Which of the following would cause the wage for computer programmers to increase?
A decrease in the amount of physical capital per computer programmer
An improvement in the education of computer programmers
An increase in the social prestige associated with being a 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
What is MRC?
Marginal Revenue Cost
Marginal Resource Counting
Marginal Resource Cost
Mad, Risky, Customers
What is the rule to profit maximize when hiring workers?
MR = MC
MRC = MRS
MRP = MRC
S = D
Pickleco, a pickle-producing firm, hires labor and capital in perfectly competitive factor markets. The firm is minimizing its costs at the current production level. The marginal product of labor is 100 units and the marginal product of capital is 60 units. If the rental price of capital is $12, what is the wage Pickleco is paying its workers?
5
8.33
12
20
40
Mary manages a manufacturing plant. Two inputs are used to produce the product. To minimize the costs of production, Mary should continue to hire inputs up to the level at which the
price of each input is equal
marginal product of each input is equal
(marginal product × price) of each input is equal
(marginal product ÷ price) of each input is equal
(marginal product − price) of each input is equal
Suppose the market for health-care workers is perfectly competitive. Which of the following will happen in the market for health-care workers in the short run if the demand for health care increases?
The supply curve of health-care workers will shift to the right.
The supply curve of health-care workers will shift to the left.
The demand curve for health-care workers will shift to the right.
The demand curve for health-care workers will shift to the left.
Neither the demand curve nor the supply curve of health-care workers will shift.
Which of the following will shift the demand curve for a factor of production to the left?
A decrease in the price of the factor of production
A decrease in the price of a substitute factor of production
An increase in the price of the product produced by the factor
An increase in the marginal product of the factor
An improvement in technology used by the factor of production
For a certain firm, the marginal revenue product for the last unit of labor is $60, and the marginal revenue product for the last unit of capital is $100. Which of the following combinations of factor prices would be necessary for the firm to maximize profits?
Wage $2
Rent $5
Wage $3
Rent $20
Wage $10
Rent $10
Wage $2
Rent $25
Wage $60
Rent $100
ABC Limited, Inc., sells its product in a perfectly competitive market for a price of $15 per unit and hires workers at a daily wage of $75. Labor is the only factor cost, and the firm is currently earning profits. If ABC hires one more worker and output increases by 5 units per day, the firm's profits will
decrease by $5
decrease by $75
increase by $75
increase by $15
remain unchanged
According to the information in the table above, the twelfth worker would increase the hourly profit by
0.2
1.1
1.3
2.4
5.2
What will happen to Demand for labor in the cardboard box market if the demand for cardboard boxes increases? (BUT, the cost of producing cardboard boxes remains the same)
Demand for Labor will increase, because firms will be able to sell the products workers make for more money.
Demand for Labor will increase, because more people will want to work in cardboard box factories
Demand for Labor will decrease, because fewer people will be buying cardboard boxes if demand has increased.
Demand for Labor will decrease, because cardboard will become more scarce.
$400
$300
$80 (8 x $10)
It depends on the minimum wage
The highest wage that a profit-maximizing firm will be willing to pay a worker will be equal to the...
Marginal Revenue Product provided by that worker.
Minimum amount of money that worker requires to support themselves and/or their family.
Maximum amount of money the business can pay to its workers without going bankrupt
1st worker
2nd worker
3rd worker
4th worker
5th worker
What is the most common cause of the Diminishing Marginal Returns?
A firm has begun to overuse its fixed resources. In other words, the factory no longer has vital tasks for additional workers.
After a certain point, additional workers will not fit in well with older workers. This will lead to conflict.
Which of the following is the best available definition for the principle of Diminishing Marginal Returns?
As more and more units of a variable input are added to a fixed input, the output increases at a decreasing rate
When something is marginal, people want less of it... meaning that it "diminishes"
As less and less of an economic product is produced by consumers, more and more of it must be produced by producers.
All of the Above
$450
10 boxes
90 boxes ($450 / $5 per box)
280 boxes ($1,400 / $5 per box)
$90
$450
$950
$1,400
$90
$100
$450
$500
Economists use the term ________ _______ to refer to the additional money a business earns through a small amount of additional production.
Derived Demand
Marginal Cost
Marginal Revenue
Average Revenue
Economists use the term ________ _______ __ _____ to refer to the additional products a business produces as a result of hiring one more worker.
Average Product of Labor
Average Total Cost
Marginal Revenue
Marginal Product of Labor
In factor markets, demand is based on how useful resources are for production. Economists call this principle...
Derived Demand
The Law of Demand
Marginal Factor Cost
Marginal Revenue Product of Land
A firm has 10 workers. They pay each worker $100/week. In any given week, the firm's "Total Cost of Labor" =
$100 x 10 workers = $1,000
$100 + 10 workers = $110
$100 X 10 workers = $100,000
Insufficient Information to answer question
Supply of Labor offered by workers
Demand for Labor
Supply of Jobs offered by busineses
All of the Above
Wages
Supply
Marginal Revenue Product of Labor
Quantity of Labor
Wages
Supply
Marginal Revenue Product of Labor
Quantity of Labor
Wages
Supply
Marginal Revenue Product of Labor
Quantity of Labor
Wages
Supply
Marginal Revenue Product of Labor
Quantity of Labor
Which of the following will occur when wage rates decrease in a given labor market?
The supply of labor will decrease
The demand for labor will increase
The quantity supplied of labor will decrease
The quantity demanded of labor will decrease
The supply of labor will decrease and the demand for labor will increase
Which of the following statements about the relationship between the demand for apple pickers and the demand for apples is true?
An increase in the demand for apples increases the demand for apple pickers
An increase in the demand for apples increases the wage rate and decreases the demand for apple pickers
A decrease in the demand for apples decreases the wage rate and increases the demand for apple pickers
An increase in the demand for apples increases productivity and the demand for apple pickers
A decrease in the demand for apples decreases productivity and the demand for apple pickers
Which of the following will result in an increase in supply of labor?
An increase in the wage rate
An increase in the marginal product of labor
An increase in the tax rates applied to labor income
An increase in the desire for greater leisure time
An increase in the retirement age
Which of the following will result in an increase in labor demand?
An increase in the wage rate
An increase in the productivity of labor
A decrease in the price of the product that labor is used to produce
A decrease in the wage rate
A decrease in the demand for the product produced by labor
