Order Factor Markets Discussion Solutions

Order Factor Markets Discussion Solutions
Order 5908323
Order Factor Markets Discussion Solutions
1. If educational advancement courses are offered to employees, how
would this affect the productivity of labor?
(A) It would increase.
(B) It would decrease.
(C) It would remain the same.
(D) It would shift the supply curve to the left.
(E) It would have no effect on supply.
2. Beta Industries hires workers for $9 an hour. The price of their
product is $5. How many hours of work are required for a marginal
revenue product of $40?
(A) 8
(B) 4.5
(C) 20
(D) 36
(E) 50
3. What is the relationship between the MRP curve and the demand
curve?
(A) They both slope downward.
(B) They both slope upward.
(C) There is a diminishing marginal return.
(D) They are horizontal in the long run.
(E) They are vertical in the long run.
Order Factor Markets Discussion Solutions
4. Product demand, productivity, and the availability of technology are
examples of
(A) the determinants of supply
(B) the determinants of demand
(C) the determinants of labor demand
(D) the determinants of elasticity of demand
(E) the determinants of labor supply
5. Changes in tastes and immigration reflect
(A) supply only
(B) demand only
(C) product demand
(D) high elasticity
(E) reasons why the labor supply curve might shift
6. A single firm that has market power in the labor market is known as
a(n)
(A) purely competitive firm
(B) monopsony
(C) oligarchy
(D) monopolistic competition
(E) perfect competition
7. Seth finally realized his dream to open a 24-hour bagel café. Which
of the following scenarios would increase Seth’s demand for labor?
(A) The price of wheat increases.
(B) The price of dairy increases.
(C) The price of wheat decreases.
(D) A blight destroys thousands of acres of farmland.
(E) The government establishes a tax on wheat.
8. Derived demand refers to which of the following?
(A) Labor demand for a business is the MRP curve.
(B) Demand for labor comes from the demand for the product
produced.
(C) The combination of labor and capital helps minimize total costs.
(D) A business hires workers to the point where MRP = MRC.
(E) Certain firms are wage setters.
Order Factor Markets Discussion Solutions
9. Which of the following is an example of derived demand?
(A) People desire food to eat, so farms invest in tractors and hire
workers.
(B) The wages of farmhands increase, so supply decreases and
demand increases.
(C) The wages of farmhands decrease, so supply increases and
demand decreases.
(D) People desire food to eat, so farms raise the price of food.
(E) None of the above
10. All of the following will increase the demand for doctors EXCEPT
(A) there is an increase in government subsidies given to college
students studying premed
(B) a philanthropist donates a new research facility wing to a
hospital
(C) a cure is found for the common cold
(D) the American Medical Association decreases the credit
requirements needed to receive a medical degree
(E) all the above increase demand
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