Question 1

If a firm adopts a labor-augmenting piece of technology,it will:

Accepted Answer

A)  increase the marginal product of labor.
B)  decrease the marginal product of labor.
C)  increase the marginal supply of labor.
D)  decrease the marginal supply for labor.E) C) and D)
F) B) and C)

Question 2

Human capital is defined as:

Accepted Answer

A)  the set of skills,knowledge,experience,and talent that determine the productivity of workers.
B)  the amount of capital that is operated by workers in a firm.
C)  the amount of capital that is operated by workers in an industry.
D)  the amount of workers a firm employs.E) A) and C)
F) None of the above

Question 3

If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees,we would expect:

Accepted Answer

A)  the labor-supply curve in that market to shift left.
B)  the labor-demand curve in that market to shift left.
C)  the labor-supply curve in that market to shift right.
D)  the labor-demand curve in that market to shift right.E) B) and D)
F) None of the above

Question 4

If Donald receives a pay raise and the income effect outweighs the price effect on his labor supply decisions,he will:

Accepted Answer

A)  work more hours.
B)  work less hours.
C)  work the same amount.
D)  Cannot be determined without more information.E) A) and C)
F) All of the above

Question 5

Which of the following has a production process that would be considered labor intensive?

Accepted Answer

A)  Hairstyling services
B)  Farming in a rich country
C)  T-shirt production
D)  All of these would be considered labor intensive.E) B) and C)
F) A) and C)

Question 6

In general,the larger the membership of a union:

Accepted Answer

A)  the more power it has to keep wages above equilibrium.
B)  the less power it has to keep wages above equilibrium.
C)  the more likely the distribution of power within the organization will make it less effective.
D)  None of these statements is true.E) C) and D)
F) A) and D)

Question 7

A capital intensive production process is one in which:

Accepted Answer

A)  highly specialized capital is needed to produce the good.
B)  a part of the production process must be done by capital and cannot be substituted.
C)  a lot of capital is hired relative to the total inputs needed to produce the good.
D)  total costs will be minimized if capital is the primary factor of production used.E) A) and B)
F) C) and D)

Question 8

A person will choose to work another hour if the benefit of another hour of work is:

Accepted Answer

A)  greater than the opportunity cost.
B)  exactly equal to the opportunity cost.
C)  less than the opportunity cost.
D)  The supply of labor is unique and does not involve weighing costs and benefits.E) A) and D)
F) C) and D)

Question 9

The labor-supply and labor-demand curves for the market intersect:

Accepted Answer

A)  only once.
B)  at the equilibrium wage.
C)  at the profit-maximizing quantity for the firms in the market.
D)  All of these statements are true.E) All of the above
F) None of the above

Question 10

Which of the following would be considered a "leisure" activity by economists?

Accepted Answer

A)  Driving an on-duty taxi
B)  Driving to the movies
C)  Driving a forklift for work
D)  None of these is considered leisure by economists.E) B) and C)
F) A) and D)

Question 11

A slump in one industry could increase the relative attractiveness of another industry:

Accepted Answer

A)  increasing the quantity of labor supplied in the latter.
B)  decreasing the quantity of labor supplied in the latter.
C)  increasing the quantity of labor demanded in the latter.
D)  decreasing the quantity of labor demanded in the latter.E) None of the above
F) All of the above

Question 12

For any competitive labor market,what change would have to occur to cause the labor supply to decrease and shift the supply curve left?

Accepted Answer

A)  Number of firms increases
B)  None of these statements is true.
C)  Number of workers increases
D)  Opportunity cost of work increasesE) B) and C)
F) None of the above

Question 13

If the demand for a good increases,it is likely that the demand for the factors of production used as inputs will:

Accepted Answer

A)  increase.
B)  decrease.
C)  stay the same.
D)  None of these statements is true.E) C) and D)
F) B) and D)

Question 14

If the demand for pizza increases,then as a result,it is highly likely that the demand for:

Accepted Answer

A)  chicken nuggets will fall.
B)  soda will increase.
C)  mozzarella cheese will increase.
D)  All of these are a likely result.E) A) and B)
F) All of the above

Question 15

In the market for labor:

Accepted Answer

A)  individuals make up the demand.
B)  firms create the supply.
C)  the price in the market is the wage.
D)  All of these statements are true.E) A) and B)
F) A) and C)

Question 16

Graphically,we can think of the marginal product of a factor as the:

Accepted Answer

A)  slope of the total production curve,when output is plotted against the quantity of the input that is used.
B)  slope of the total cost curve,when output is plotted against the costs of the quantity of the inputs used.
C)  additional cost associated with producing one more unit of output.
D)  additional inputs associated with producing one more unit of output.E) None of the above
F) C) and D)

Question 17

The production of a Broadway show:

Accepted Answer

A)  cannot choose what combination of inputs to use,in general.
B)  is capital poor.
C)  is labor rich.
D)  None of these statements is true.E) A) and B)
F) A) and C)

Question 18

Charles sorts mail at a local delivery office.He makes $8 an hour and usually works 40 hours a week,and picks up a few extra night shifts regularly.Charles gets a raise and now is earning $10 an hour.In response to this raise,Charles:

Accepted Answer

A)  will definitely work more,since he can make more each hour he works.
B)  will definitely work less,now that he earns more per hour.
C)  will definitely not change his work habits,and simply enjoy the pay increase.
D)  None of these statements is necessarily true.E) B) and D)
F) B) and C)

Question 19

The factor of production called "capital" refers to:

Accepted Answer

A)  manufactured goods that are used to produce new goods.
B)  any piece of raw material that is used to produce goods and services.
C)  any input that's not a human being or dirt.
D)  None of these statements is true.E) B) and D)
F) B) and C)

Question 20

The quantity of labor supplied is determined by the:

Accepted Answer

A)  number of firms.
B)  opportunity cost of providing their labor.
C)  marginal product of labor.
D)  All of these statements are true.E) A) and D)
F) A) and C)

Exam 16: The Factors of Production

A slump in one industry could increase the relative attractiveness of another industry:

Correct AnswerverifiedShow Answer

Graphically,we can think of the marginal product of a factor as the:

Correct AnswerverifiedShow Answer

If a firm adopts a labor-augmenting piece of technology,it will:

Correct AnswerverifiedShow Answer

If the demand for a good increases,it is likely that the demand for the factors of production used as inputs will:

Correct AnswerverifiedShow Answer

A capital intensive production process is one in which:

Correct AnswerverifiedShow Answer

The production of a Broadway show:

Correct AnswerverifiedShow Answer

In the market for labor:

Correct AnswerverifiedShow Answer

For any competitive labor market,what change would have to occur to cause the labor supply to decrease and shift the supply curve left?

Correct AnswerverifiedShow Answer

The quantity of labor supplied is determined by the:

Correct AnswerverifiedShow Answer

Charles sorts mail at a local delivery office.He makes $8 an hour and usually works 40 hours a week,and picks up a few extra night shifts regularly.Charles gets a raise and now is earning $10 an hour.In response to this raise,Charles:

Correct AnswerverifiedShow Answer

Which of the following would be considered a "leisure" activity by economists?

Correct AnswerverifiedShow Answer

The labor-supply and labor-demand curves for the market intersect:

Correct AnswerverifiedShow Answer

In general,the larger the membership of a union:

Correct AnswerverifiedShow Answer

A person will choose to work another hour if the benefit of another hour of work is:

Correct AnswerverifiedShow Answer

Human capital is defined as:

Correct AnswerverifiedShow Answer

Which of the following has a production process that would be considered labor intensive?

Correct AnswerverifiedShow Answer

If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees,we would expect:

Correct AnswerverifiedShow Answer

If the demand for pizza increases,then as a result,it is highly likely that the demand for:

Correct AnswerverifiedShow Answer

If Donald receives a pay raise and the income effect outweighs the price effect on his labor supply decisions,he will:

Correct AnswerverifiedShow Answer

The factor of production called "capital" refers to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified