Question 1

Describe the process by which the market for capital and the market for land reach equilibrium.As part of your description,elaborate on the role of the stock of the resource versus the flow of services from the resource.

Accepted Answer

Equilibriums in the markets for land and...

Question 2

A competitive firm will hire workers up to the point at which the value of the marginal product of labor equals the

Accepted Answer

A)  average total cost.
B)  average variable cost.
C)  wage.
D)  price per unit of output.E) A) and D)
F) B) and D)

Question 3

When economists refer to a firm's capital,they are describing the

Accepted Answer

A)  markets for final goods and services.
B)  stock of equipment and buildings used in production.
C)  amount of bank financing used by the firm.
D)  amount of financing provided by the equity markets.E) None of the above
F) A) and B)

Question 4

When the wages paid to government economists increase,the labor supply curve for academic economists

Accepted Answer

A)  shifts to the left.
B)  shifts to the right.
C)  will become backward-sloping.
D)  will not change.E) A) and D)
F) All of the above

Question 5

Technological advances can cause the labor demand curve to shift.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an example of a firm's derived demand?

Accepted Answer

A)  Workers with higher levels of education earn more,on average,than workers with lower levels of education.
B)  Factors that decrease the demand for labor will decrease the equilibrium wage.
C)  A tractor manufacturer's demand for assembly-line workers is inseparably linked to the supply of tractors.
D)  Factors that increase the demand for labor will increase the equilibrium wage.E) B) and D)
F) A) and C)

Question 7

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Accepted Answer

A)  The labor supply will stay unchanged until the wages paid to pear pickers change.
B)  The labor supply will decrease.
C)  The labor supply will increase.
D)  The labor supply may fall or rise,depending on the price of pears.E) A) and D)
F) A) and C)

Question 8

Consider the market for capital equipment.Suppose the price of firms' output increases.Holding all else constant,the equilibrium rental price of capital equipment will

Accepted Answer

A)  increase.
B)  decrease.
C)  not change.
D)  It is not possible to determine what will happen to the equilibrium rental price of capital equipment.E) B) and C)
F) A) and B)

Question 9

According to the neoclassical theory of distribution,the wages paid to workers depend on the

Accepted Answer

A)  supply of labor.
B)  demand for labor.
C)  marginal productivity of labor.
D)  All of the above are correct.E) B) and D)
F) None of the above

Question 10

The inputs used to produce goods and services are called

Accepted Answer

A)  Luddite factors.
B)  marginal products.
C)  labor demands.
D)  factors of production.E) None of the above
F) A) and C)

Exam 18: The Market for the Factors of Production

According to the neoclassical theory of distribution,the wages paid to workers depend on the

Correct Answer
verified

Which of the following is an example of a firm's derived demand?

Correct Answer
verified

The inputs used to produce goods and services are called

Correct Answer
verified

Technological advances can cause the labor demand curve to shift.

Correct Answer
verified

A competitive firm will hire workers up to the point at which the value of the marginal product of labor equals the

Correct Answer
verified

When the wages paid to government economists increase,the labor supply curve for academic economists

Correct Answer
verified

Consider the market for capital equipment.Suppose the price of firms' output increases.Holding all else constant,the equilibrium rental price of capital equipment will

Correct Answer
verified

When economists refer to a firm's capital,they are describing the

Correct Answer
verified

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Correct Answer
verified

Describe the process by which the market for capital and the market for land reach equilibrium.As part of your description,elaborate on the role of the stock of the resource versus the flow of services from the resource.

Correct Answer
verified
Equilibriums in the markets for land and...
View Answer

Exam 18: The Market for the Factors of Production

According to the neoclassical theory of distribution,the wages paid to workers depend on the

Correct AnswerverifiedShow Answer

Which of the following is an example of a firm's derived demand?

Correct AnswerverifiedShow Answer

The inputs used to produce goods and services are called

Correct AnswerverifiedShow Answer

Technological advances can cause the labor demand curve to shift.

Correct AnswerverifiedShow Answer

A competitive firm will hire workers up to the point at which the value of the marginal product of labor equals the

Correct AnswerverifiedShow Answer

When the wages paid to government economists increase,the labor supply curve for academic economists

Correct AnswerverifiedShow Answer

Consider the market for capital equipment.Suppose the price of firms' output increases.Holding all else constant,the equilibrium rental price of capital equipment will

Correct AnswerverifiedShow Answer

When economists refer to a firm's capital,they are describing the

Correct AnswerverifiedShow Answer

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Correct AnswerverifiedShow Answer

Describe the process by which the market for capital and the market for land reach equilibrium.As part of your description,elaborate on the role of the stock of the resource versus the flow of services from the resource.

Correct AnswerverifiedEquilibriums in the markets for land and...View AnswerShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Equilibriums in the markets for land and...
View Answer