A change in demand for a given factor of production will not occur if: Answer A.
ID: 1232353 • Letter: A
Question
A change in demand for a given factor of production will not occur if:Answer
A. the productivity of that factor increases.
B. there is a decrease in the price of a substitute factor.
C. the price of that factor falls.
D. the productivity of that factor decreases.
Question 2
In terms of contribution to total income, the single most important factor of production is:
Answer
A. labor.
B. entrepreneurship.
C. natural resources.
D. capital.
Question 3
The trade off between work and leisure underlying the supply of labor involves the substitution effect and the:
Answer
A. complementary effect.
B. elasticity effect.
C. production effect.
D. income effect.
Question 4
(Exhibit: Marginal Revenue Product and Demand) If the product price is $4 per unit and the price of the factor of production is $80 per unit, the profit-maximizing quantity of the factor is _______ unit(s).
Answer
A. 1
B. 5
C. 7
D. 3
Question 5
In perfect competition:
Answer
A. MFCL is greater than the price of labor.
B. the supply curve of labor to the firm is a horizontal line.
C. MRPL equals the price of the good.
D. MFCL is less than the price of labor.
Question 6
An increase in the participation rate of women in the U.S. labor force:
Answer
A. has shifted the supply curve of labor to the right.
B. has increased the demand for labor.
C. resulted in a faster increase in wages.
D. has shifted the supply of labor to the left.
Question 7
A firm's demand curve for labor is:
Answer
A. the downward-sloping portion of its marginal revenue product curve.
B. the upward-sloping portion of its marginal revenue product curve.
C. horizontal for the firm in perfect competition.
D. the downward-sloping portion of its marginal product curve.
Question 8
Since the 1970s, wage rates in the United States have _______ more _______ than they did in the previous two decades.
Answer
A. decreased; slowly
B. decreased; rapidly
C. increased; rapidly
D. increased; slowly
Question 9
Which of the following statements is true?
Answer
A. If the MFCL = MRPL the firm should hire more labor.
B. If MFCL < MRPL the firm should hire more labor.
C. If MFCL > 0, the firm should shut down.
D. If the MFCL > MRPL the firm should hire more labor.
Question 10
A leftward shift in the labor supply curve would result if:
Answer
A. people have less nonlabor income.
B. transit costs to and from work decline.
C. the population increases.
D. people value leisure more highly.
Question 11
A firm is in equilibrium when the marginal factor cost is:
Answer
A. equal to the marginal revenue product.
B. less than the price of the factor.
C. equal to the average product.
D. greater than the average product.
Question 12
A leftward shift in the labor supply curve would result if:
Answer
A. transit costs to and from work increase.
B. people value leisure less highly.
C. the population increases.
D. people have less nonlabor income.
Question 13
(Exhibit: Wage Determination in Perfect Competition) Which of the following statements is true?
Answer
A. The firm will hire L1 units of labor, as shown in Panel (a).
B. The individual firm is a wage setter.
C. The firm's MFC of labor is equal to the price of the firm's output.
D. Total employment is equal to L1, as shown in Panel (a).
Question 14
(Exhibit: Marginal Revenue Product and Demand) If the product price is $2 per unit and the price of the factor of production is $20 per unit, the profit-maximizing quantity of the factor is _______ units.
Answer
A. 6
B. 4
C. 8
D. 2
Question 15
(Exhibit: Marginal Revenue Product and Demand) Assume that the product price is $2 per unit, the price of the factor of production is $40 per unit, and 8 units are being hired. Profit can be maximized by hiring _______ unit(s).
Answer
A. 2 more
B. 1 more
C. 3 fewer
D. 1 fewer
Question 16
(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the price for "bricks laid in the wall" by a bricklayer is $.10 a brick, the marginal product of the second bricklayer is _______ bricks.
Answer
A. 1,200
B. 1,400
C. 1,300
D. 1,500
Question 17
In a perfectly competitive labor market, each firm can hire:
Answer
A. larger quantities of labor at going market wages per worker.
B. all the labor it wants, but only by outbidding its competitors.
C. larger quantities of labor at rising wages per worker.
D. only a fixed amount of labor at the going wage.
Question 18
(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the equilibrium wage in the market for bricklayers is $100 a day, but a minimum wage for bricklayers of $130 a day is set by the government:
Answer
A. 3 workers who otherwise would have been employed are now unemployed.
B. the firm will shut down.
C. 6 workers will now be hired by the firm.
D. all bricklayers are better off.
Question 19
A factor demand curve will shift because of:
Answer
A. the proportion of the factor's cost relative to total cost.
B. changes in technology.
C. the slope of the MP curve.
D. the elasticity of demand for the final product.
Question 20
Which of the following statements is true?
Answer
A. MFC = change in total cost/ change in the quantity of a factor.
B. MFC = the change in the quantity of a factor times the change in the price of the factor.
C. MRPL = MC of the output.
D. MRPL = MPL x (P), where P is the price of labor.
Explanation / Answer
A change in demand for a given factor of production will not occur if:
Answer
A. the productivity of that factor increases.
B. there is a decrease in the price of a substitute factor.
C. the price of that factor falls.
D. the productivity of that factor decreases.
Question 2
In terms of contribution to total income, the single most important factor of production is:
Answer
A. labor.
B. entrepreneurship.
C. natural resources.
D. capital.
Question 3
The trade off between work and leisure underlying the supply of labor involves the substitution effect and the:
Answer
A. complementary effect.
B. elasticity effect.
C. production effect.
D. income effect.
Question 4
(Exhibit: Marginal Revenue Product and Demand) If the product price is $4 per unit and the price of the factor of production is $80 per unit, the profit-maximizing quantity of the factor is _______ unit(s).
Answer
A. 1
B. 5
C. 7
D. 3
Question 5
In perfect competition:
Answer
A. MFCL is greater than the price of labor.
B. the supply curve of labor to the firm is a horizontal line.
C. MRPL equals the price of the good.
D. MFCL is less than the price of labor.
Question 6
An increase in the participation rate of women in the U.S. labor force:
Answer
A. has shifted the supply curve of labor to the right.
B. has increased the demand for labor.
C. resulted in a faster increase in wages.
D. has shifted the supply of labor to the left.
Question 7
A firm's demand curve for labor is:
Answer
A. the downward-sloping portion of its marginal revenue product curve.
B. the upward-sloping portion of its marginal revenue product curve.
C. horizontal for the firm in perfect competition.
D. the downward-sloping portion of its marginal product curve.
Question 8
Since the 1970s, wage rates in the United States have _______ more _______ than they did in the previous two decades.
Answer
A. decreased; slowly
B. decreased; rapidly
C. increased; rapidly
D. increased; slowly
Question 9
Which of the following statements is true?
Answer
A. If the MFCL = MRPL the firm should hire more labor.
B. If MFCL < MRPL the firm should hire more labor.
C. If MFCL > 0, the firm should shut down.
D. If the MFCL > MRPL the firm should hire more labor.
Question 10
A leftward shift in the labor supply curve would result if:
Answer
A. people have less nonlabor income.
B. transit costs to and from work decline.
C. the population increases.
D. people value leisure more highly.
Question 11
A firm is in equilibrium when the marginal factor cost is:
Answer
A. equal to the marginal revenue product.
B. less than the price of the factor.
C. equal to the average product.
D. greater than the average product.
Question 12
A leftward shift in the labor supply curve would result if:
Answer
A. transit costs to and from work increase.
B. people value leisure less highly.
C. the population increases.
D. people have less nonlabor income.
Question 13
there is no exhibit?
(Exhibit: Wage Determination in Perfect Competition) Which of the following statements is true?
Answer
A. The firm will hire L1 units of labor, as shown in Panel (a).
B. The individual firm is a wage setter.
C. The firm's MFC of labor is equal to the price of the firm's output.
D. Total employment is equal to L1, as shown in Panel (a).
Question 14
No exhibit
(Exhibit: Marginal Revenue Product and Demand) If the product price is $2 per unit and the price of the factor of production is $20 per unit, the profit-maximizing quantity of the factor is _______ units.
Answer
A. 6
B. 4
C. 8
D. 2
Question 15
no exhibit
(Exhibit: Marginal Revenue Product and Demand) Assume that the product price is $2 per unit, the price of the factor of production is $40 per unit, and 8 units are being hired. Profit can be maximized by hiring _______ unit(s).
Answer
A. 2 more
B. 1 more
C. 3 fewer
D. 1 fewer
Question 16
no exhibit
(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the price for "bricks laid in the wall" by a bricklayer is $.10 a brick, the marginal product of the second bricklayer is _______ bricks.
Answer
A. 1,200
B. 1,400
C. 1,300
D. 1,500
Question 17
In a perfectly competitive labor market, each firm can hire:
Answer
A. larger quantities of labor at going market wages per worker.
B. all the labor it wants, but only by outbidding its competitors.
C. larger quantities of labor at rising wages per worker.
D. only a fixed amount of labor at the going wage.
Question 18
no exhibit
(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the equilibrium wage in the market for bricklayers is $100 a day, but a minimum wage for bricklayers of $130 a day is set by the government:
Answer
A. 3 workers who otherwise would have been employed are now unemployed.
B. the firm will shut down.
C. 6 workers will now be hired by the firm.
D. all bricklayers are better off.
Question 19
A factor demand curve will shift because of:
Answer
A. the proportion of the factor's cost relative to total cost.
B. changes in technology.
C. the slope of the MP curve.
D. the elasticity of demand for the final product.
Question 20
Which of the following statements is true?
Answer
A. MFC = change in total cost/ change in the quantity of a factor.
B. MFC = the change in the quantity of a factor times the change in the price of the factor.
C. MRPL = MC of the output.
D. MRPL = MPL x (P), where P is the price of labor.
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