Q&A Hero

Q: With a large group of citizens leaving a country, what will happen to the equilibrium wage and quantity of workers employed? a. Both will fall. b. Both will rise. c. The equilibrium number of workers will rise and the wage will fall. d. The equilibrium number of workers will fall and the wage will fall. e. The equilibrium number of workers will fall and the wage will rise.

Q: Companies begin to find that customers, when calling customer service, want to talk to real people rather than to a recording. The demand for receptionists will ________ and the market equilibrium wage will ________.a. fall; fall b. increase; fall c. stay the same; rised. decrease; risee. increase; increase

Q: The following graph represents Zendaru2019s labor market. Use this graph to answer the following questions: At a wage of ________, ________ workers are demanded.a. $5; 10 b. $10; 35 c. $15; 40d. $40; 10e. $45; 45

Q: Use the following table, which shows the supply and demand schedules for workers in the country of Hovian, to answer the following questions:WageQuantity ofWorkers DemandedQuantity of Workers Supplied$1015075$20100100$3075125$4060135$5040125There will be a surplus of ________ workers at a wage of ________.a. 75; $10 b. 100; $20 c. 135; $40d. 40; $40e. 50; $30

Q: There will be a ________ of workers when the wage is ________ the equilibrium wage.a. surplus; at b. shortage; below c. shortage; aboved. shortage; ate. surplus; below

Q: The labor market is said to be in equilibrium when a. everyone who wants to work is supplying his or her labor. b. the number of workers is equal to the number of jobs available at a specific wage. c. firms are unwilling to hire more workers. d. workers keep their hours constant. e. the number of available workers is increasing.

Q: The government lowers the retirement age to 55. We would expect to see the labor supply curve a. stay the same. b. shift left. c. stay the same but move upward. d. stay the same but move downward. e. shift right.

Q: After World War II, social norms relating to womens participation in the labor force relaxed and women were more likely to be employed outside the home. We would expect to see the labor supply curvea. stay the same. b. shift left. c. stay the same but move upward.d. stay the same but move downward.e. shift right.

Q: The citizens of Robbinsville notice that their friends and family in the neighboring city of Deville are earning higher wages. We would expect the labor supply in Robbinsville ________ and the labor supply in Deville to ________.a. shift right; shift right b. shift left; shift left c. remain unchanged; shift rightd. shift left; shift righte. shift right; shift left

Q: More job opportunities open up in the South, prompting labor supply curves in northern states to ________ and in southern states to ________.a. remain unchanged; shift right b. shift right; shift right c. shift left; shift rightd. shift left; remain unchangede. shift left; shift left

Q: The minimum wage is increased to $15. This higher wage might ________ labor force participation, shifting the labor supply curve to the ________.a. decrease; right b. increase; left c. decrease; leftd. increase; righte. not change; right

Q: Immigration is when a. foreign persons enter another country. b. foreign persons leave another country. c. citizens move to another country. d. citizens move within their own country. e. foreign persons move within their own country.

Q: Migration is when a. foreign persons enter a country. b. foreign persons leave a country. c. citizens move to another country. d. citizens move within their own country. e. foreign persons move within their own country.

Q: Ummal travels back in time to deposit $100 in a high-interest-bearing savings account. When she returns to the present, she is a billionaire. We can expect Ummal to work ________ hours because of the ________ effect.a. more; substitution b. more; income c. fewer; substitutiond. more; labor leisuree. fewer; income

Q: Refer to the following graphs to answer the following questions:A. D. B. E. C. Which graph shows the substitution effect dominating the income effect of higher wages?a. Graph A b. Graph B c. Graph Cd. Graph De. Graph E

Q: When their wages rise, Raymond works more and Brandi works less. We can infer that Raymond values income ________ than Brandi.a. less b. the same c. mored. half as muche. a third more

Q: When the opportunity cost of leisure is high, people tend to work ________ hours. When it is low, people tend to work ________ hours.a. the same; fewer b. more; fewer c. fewer; mored. more; the samee. fewer; the same

Q: When Noahs wage rises and he decides to work more hours, we know that the ________ effect has dominated the ________ effect.a. substitution; income b. labor; leisure c. income; substitutiond. leisure; labore. substitution; leisure

Q: The backward-bending labor supply curve has its shape because, at a. low wages, the income effect dominates the substitution effect, but the reverse occurs at high wages. b. high wages, the substitution effect dominates the income effect, but the reverse occurs at low wages. c. low wages, the substitution effect dominates the income effect, but the reverse occurs at high wages. d. all wages, the income effect dominates the substitution effect. e. all wages, the substitution effect dominates the income effect.

Q: If you know that the substitution effect dominates the income effect when Jaspers wage rises, you can tell that his labor supply curve is a. upward-sloping. b. downward-sloping. c. vertical. d. upward-sloping at an increasing rate. e. downward-sloping at an increasing rate.

Q: No matter how high his wage rises, Johann will always work more. His labor supply curve is a. downward-sloping. b. horizontal. c. vertical. d. upward-sloping. e. upward-sloping at an increasing rate.

Q: When Franklin earns more income but still works less, leisure is a ________ good for him.a. substitute b. complement c. luxuryd. necessitye. normal

Q: Rowan is deciding whether to pick up more hours at work or to take a vacation. This decision best describes a. her hours decision. b. her labor force participation decision. c. the value she places on income. d. the laborleisure trade-off. e. the necessity of income.

Q: When people make more money, they sometimes take more vacation time. Based on this information, we can say that leisure is a(n) ________ good.a. substitute b. complementc. inferiord. Giffene. normal

Q: Labor supply is the relationship between a. wages and willingness to hire workers. b. price of output and amount of output for sale. c. price of capital and amount of capital for sale. d. wages and willingness to work. e. wages and amount of output for sale.

Q: The backward-bending labor supply curve occurs because workers value leisure a. and income differently as wages change. b. consistently more than they do income at all wages. c. consistently less than they do income at all wages. d. and income by the same amount at all wages. e. and income by fluctuating, unpredictable amounts at any wage.

Q: The income effect describes the a. incentive to change jobs. b. decision whether to join the labor force. c. decision to ask for a raise. d. incentive to work more when the wage rises. e. incentive to work less when the wage rises.

Q: The substitution effect describes the a. incentive to work more when the wage rises. b. incentive to work less when the wage rises. c. decision whether to work more or less. d. decision whether to join the labor force. e. incentive to change jobs.

Q: The fundamental decision faced by workers is calleda. labor demand. b. labor supply. c. income effect.d. the laborleisure trade-off.e. the substitution effect.

Q: Yolanda owns a temp agency. She sees demand for her workers increase because firms prefer a more contingent workforce. The value of the marginal product of labor of her temps a. stays the same. b. increases because the temps produce more per hour. c. decreases because the temps know they are going to get jobs. d. increases because the price of their services is higher. e. falls because job uncertainty lowers productivity.

Q: If more of the production process for automobiles were switched over to machines, the demand for auto factory assembly line workers would ________ machine maintenance.a. decline but increase b. decline and also decline c. increase but declined. increase and also increasee. remained unchanged but increase

Q: Refer to the following graphs to answer the following questions: A. B. C. D. E. Choose the graph that represents the following situation: Out of fear of losing their jobs in a depressed economic climate, workers increase their rate of production.a. Graph A b. Graph B c. Graph Cd. Graph De. Graph E

Q: As computer usage in companies and in the home has increased, the labor demand for information technology (IT) workers hasa. remained steady. b. decreased. c. fallen to zero.d. infinitely increased.e. increased.

Q: The use of farm machinery to plant and harvest crops has increased because it is more productive than the typical farmhand. Demand for farmhands hasa. remained steady. b. shifted to other areas of the farm. c. decreased.d. fallen to zero.e. increased.

Q: Bobby knows that she is producing a value just equal to her wage. If the price of what she makes falls, Bobby knows that she a. will be able to keep her job. b. is likely to work overtime. c. will work less. d. is likely to be fired. e. will not be able to find work anywhere.

Q: If the price of pencils falls, the marginal product of labor will ________ and the value of the marginal product of labor will ________. a. fall; fall b. remain unchanged; increase c. rise; rise d. remain unchanged; decrease e. remain unchanged; remain unchanged

Q: If workers become more productive in a given occupation, they will likely see their employment ________.a. fall b. double c. rised. stay the samee. go into overtime

Q: Talia just applied for a position with Rorys firm. Rory knows that Talia will earn $20 an hour and can produce a value of the marginal product of labor (VMPL) of $40. Rory will ________ Talia because her VMPL is ________.a. hire; positive b. not hire; positive c. hire; negatived. not hire; negativee. possibly hire; positive

Q: Use the following graph, which depicts Mighty Maxu2019s labor demand for his duffel bag business, to answer the following questions. The labor demand curve shown is calculated based on a duffel bag price of $10.If the wage of the fifth worker is $20 and his or her value of the marginal product of labor is $25, the firma. benefits by stopping at this level of labor.b. is likely to fire the fifth worker.c. asks this fifth worker to work overtime.d. is likely to benefit by hiring more workers.e. is likely to lose profit by hiring more workers.

Q: The worker productivity of Cutie Cupcakes is presented in the following table. Use the table to answer the following questions:Quantity of Workers100200300400Quantity of Output6509501,1501,200Cupcakes previously sold for $3 and now sell for $5. The number of workers that Cutie Cupcakes hires willa. fall.b. remain unchanged, but employees will have to work overtime.c. increase.d. stay the same.e. increase indefinitely.

Q: Use the following information to answer the following questions:Mickey L. Douglas, owner of MLD Incorporated, knows that the marginal product of labor (MPL) for his workers can be defined as follows:MPL = 32 u2013 LThe total output a given level of workers can produce is found as:Q = 32L u2013 u00bd L2He also knows that the price of his output is $3. His profits can be found as:Profit = (P u00b4 Q) u2013 (W u00b4 L) What wage would be required to allow Mickey to hire the twenty-fifth worker?a. $3 b. $7 c. $21d. $125e. $25

Q: Refer to the following table to answer the following questions:Number of WorkersOutput120230338442544If the price of output is $2 and the wage for workers is $4, how many workers will the firm hire?a. one b. two c. threed. foure. five

Q: Refer to the following table to answer the following questions:Number of WorkersOutput120230338442544The marginal product of the first worker isa. 4. b. 6. c. 10.d. 20.e. 2.

Q: The diminishing marginal product of labor exists when the last worker hired produces ________ the previous worker.a. more output than b. more value than c. less value thand. the same amount of output ase. the same amount of value as

Q: The area underneath a firms labor demand curve and above the market wage is the graphical representation of the firmsa. revenues. b. costs. c. profits.d. losses.e. hiring decisions.

Q: The fact that workers must share a limited amount of space and equipment results in ________ marginal productivity.a. increasing b. constant c. fluctuatingd. unpredictablee. diminishing

Q: The marginal product of labor is the a. additional amount of consumer goods that can be bought from an additional hours worth of work. b. additional amount of inputs a firm demands based on a change in consumer demand for the output. c. additional amount of output that can be produced from hiring one more worker. d. decreasing amount of output that can be produced from hiring one more worker. e. value of production from the last worker hired.

Q: Derived demand is NOT represented by the demand fora. bakers. b. home ovens. c. fast-food fryers.d. office space.e. car engines.

Q: Derived demand best describes the demand for which of the following options?a. cupcakes b. canned soda c. computer chipsd. cat foode. cars

Q: Which of the following is NOT a factor of production?a. land b. output c. inputsd. entrepreneurshipe. capital

Q: Factors of production are a. goods and services. b. used to make goods and services. c. purchased by the consumer for personal use. d. sold by the consumer for income. e. the property of firms.

Q: CHAPTER 14: The Demand and Supply of ResourcesDerived demand isa. consumer demand for goods and services.b. based on the prices of factors of production.c. the demand for factors of production directly by business.d. the demand for factors of production dependent on consumer demand for output.e. calculated for firms.

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Q: SHORT ANSWER1. The total production schedule for greeting card writers is as follows:Quantity of WritersTotal Cards1 502 653 764 865 946100a. Find the marginal product for each additional worker, and graph the marginal product of labor (MPL) curve.b. Why is the slope of the MPL curve negative?

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Q: Use the following table to answer the following questions:Labor HoursOutput0 0110218325430533634735If the workers are paid $10 per hour, the price of the product is $4, and the fixed cost of the business is $10, then how many workers should the business employ?a. three b. four c. fived. sixe. seven

Q: Use the following table to answer the following questions:Labor HoursOutput0 0110218325430533634735What is the marginal product of the fourth worker?a. 7.5 units b. 8.33 units c. 25 unitsd. 5 unitse. 6.25 units