Toàn bộ những gì bạn cần để qua môn kinh tế học, tài liệu này tập hợp những câu hỏi trắc nghiệm mới nhất của kinh tế vi mô năm 2018. Về nội dung tài liệu, với các khái niệm phổ biến và khái quát nhất về kinh tế vi mô cũng như những giải thích về các cơ chế hoạt động của nền kinh tế, bộ giáo trình bao gồm 23 phần cung cấp cho người đọc các kiến thức khá toàn diện và chuyên sâu về các nguyên lý kinh tế học như các lý thuyết cổ điển, các lý thuyết về phát triển: nền kinh tế trong dài hạn, các lý thuyết về vòng tròn kinh tế: nền kinh tế trong ngắn hạn, các yếu tố vi mô ẩn sau kinh tế vĩ mô, các tranh luận về chính sách vĩ mô… Tất cả đều được giải thích và đánh giá bởi một vị giáo sư kinh tế hàng đầu trên thế giới. Các khái niệm trong sách được định nghĩa rất rõ ràng, dễ nắm bắt, dễ hiểu, có tóm tắt các chương tạo điều kiện tốt nhất cho việc ôn tập
Trang 1The Markets For the Factors of Production
TRUE/FALSE
1 If the marginal productivity of the sixth worker hired is less than the marginal productivity of the fifth worker hired, then the addition of the sixth worker causes total output to decline
NAT: Analytic LOC: Labor markets TOP: Marginal product of labor
MSC: Interpretive
2 In 2008, the total income of all U.S residents was approximately $120 billion
MSC: Interpretive
3 In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker
NAT: Analytic LOC: Labor markets
TOP: Value of the marginal product MSC: Interpretive
4 Let L represent the quantity of labor and let Q represent the quantity of output Suppose a certain production function includes the points (L = 7, Q = 27), (L = 8, Q = 35), and
(L = 9, Q = 45) Based on these three points, this production function exhibits diminishing marginal product.
NAT: Analytic LOC: The study of economics, and definitions of economics
TOP: Diminishing marginal product MSC: Applicative
5 When a competitive firm hires labor up to the point at which the value of the marginal product of labor equals the wage, it also produces up to the point at which the price of output equals average variable cost
NAT: Analytic LOC: The study of economics, and definitions of economics
TOP: Competitive firms | Profit maximization MSC: Applicative
6 The demand for computer programmers is inseparably tied to the supply of computer software
MSC: Interpretive
7 If Firm X is a competitive firm in the market for labor, it has little influence over the wage it pays its
employees
MSC: Interpretive
8 The idea that rational employers think at the margin is central to understanding how many units of labor they choose to employ
MSC: Interpretive
9 For competitive firms, the curve that represents the value of marginal product of labor is the same as the demand for labor curve
NAT: Analytic LOC: Labor markets
TOP: Labor demand | Value of the marginal product MSC: Interpretive
1219
Trang 210 The value of the marginal product of labor can be calculated as the price of the final good minus the marginal product of labor.
NAT: Analytic LOC: Labor markets
TOP: Value of the marginal product MSC: Analytical
11 To compute the value of the marginal product of capital, you should multiply the market price of the good by the marginal product of capital
NAT: Analytic LOC: Labor markets
TOP: Value of the marginal product MSC: Analytical
12 A profit-maximizing competitive firm will hire workers up to the point at which the wage equals the price of the final good
NAT: Analytic LOC: Labor markets
TOP: Labor demand | Value of the marginal product MSC: Analytical
13 A profit-maximizing competitive firm will hire workers up to the point at which the wage equals the marginal product of labor
NAT: Analytic LOC: Labor markets
TOP: Labor demand | Marginal product of labor MSC: Analytical
14 Technological advances can cause the labor demand curve to shift
MSC: Applicative
15 In the United States, technological advances help explain persistently rising employment in the face of rising wages
MSC: Applicative
16 The term Luddite refers to “tekkies” or people who are the first to adopt new technological advances
MSC: Definitional
17 Labor-saving technological advances increase the marginal productivity of labor
MSC: Definitional
18 Labor-saving technological advances decrease the marginal productivity of labor
MSC: Definitional
19 Labor-augmenting technological advances increase the marginal productivity of labor
MSC: Definitional
20 Labor-augmenting technological advances decrease the marginal productivity of labor
MSC: Definitional
Trang 321 An increase in a product’s price will shift the labor demand curve for that product to the left.
MSC: Definitional
22 The quantity available of one factor of production can affect the marginal product of other factors
NAT: Analytic LOC: Labor markets
TOP: Marginal product of labor | Factor markets MSC: Applicative
23 In a competitive market for labor, the equilibrium wage always equals the value of the marginal product
NAT: Analytic LOC: Labor markets
TOP: Value of the marginal product MSC: Applicative
24 From 1960 to 2000, inflation-adjusted wages increased by 131 percent in the U.S As a result, firms reduced the amount of labor they employed by nearly 20 percent
MSC: Interpretive
25 The labor-supply curve is affected by the trade-off between labor and leisure
MSC: Interpretive
26 The opportunity cost of leisure is impossible to measure, since we can't measure leisure time in dollars
MSC: Interpretive
27 The labor supply curve reflects how workers' decisions about the labor-leisure tradeoff respond to changes in the opportunity cost of leisure
MSC: Interpretive
28 Labor supply curves are always upward sloping
MSC: Interpretive
29 When an individual’s income goes up, that individual may choose to supply less labor, resulting in a
backward-sloping labor supply curve
MSC: Interpretive
30 The supply of labor in any one market depends on the opportunities available in other markets
MSC: Applicative
31 Movements of workers from country to country can cause shifts in the labor supply curves for both countries
MSC: Applicative
Trang 432 If the demand for labor in a particular industry increases, the equilibrium wage in that industry will also increase.
MSC: Analytical
33 If the demand for labor decreases and the supply of labor is unchanged, then the opportunity cost of leisure will decrease
NAT: Analytic LOC: Understanding and applying economic models
TOP: Opportunity cost | Wages MSC: Interpretive
34 Profit maximization by firms ensures that the equilibrium wage always equals the value of the marginal product of capital
NAT: Analytic LOC: Understanding and applying economic models
TOP: Marginal product | Wages MSC: Interpretive
35 As the number of concrete workers in the United States falls, the wage paid to the remaining concrete workers will necessarily fall as well
MSC: Applicative
36 Oil field workers' wages are directly tied to the world price of oil
MSC: Applicative
37 Changes in supply and demand in the labor market will cause changes in wages
MSC: Definitional
38 In general, less productive workers are paid less than more productive workers
MSC: Applicative
39 Increases in productivity are not responsible for increased standards of living in the United States
MSC: Applicative
40 Average productivity can be measured as total output divided by total units of labor
MSC: Definitional
41 The rental price of capital is the price a person pays to own the capital indefinitely
NAT: Analytic LOC: Understanding and applying economic models
42 The marginal product of land depends on the quantity of land that is available
MSC: Interpretive
Trang 543 For a snow-removal business, the capital stock would include inputs such as snow blowers and shovels.
MSC: Definitional
44 The demand curve for each factor of production equals the value of the marginal product of that factor
MSC: Interpretive
45 Capital income does not include income paid to households for the use of their capital
MSC: Definitional
46 Firms pay out a portion of their earnings in the form of interest and dividends, and those payments are a portion of the economy's capital income
MSC: Definitional
47 When a firm decides to retain its earnings instead of paying dividends, the stockholders necessarily suffer
MSC: Interpretive
48 Capital owners are compensated according to the value of the marginal product of that capital
MSC: Interpretive
49 A change in the supply of any one factor alters the earnings of all the other factors
MSC: Interpretive
50 If the output price of a product rises, the demand for capital will increase, raising the rental price of capital
MSC: Applicative
51 Suppose the supply of capital decreases As a result, the quantity of capital used in production and the rental price of capital will both fall
MSC: Analytical
52 Suppose an influenza pandemic were to significantly decrease the population of a country We would predict
a decrease in the marginal product of land in that country
MSC: Analytical
Trang 6SHORT ANSWER
1 Describe the difference between a diminishing marginal product of labor and a negative marginal product of labor Why would a profit-maximizing firm always choose to operate where the marginal product of labor is decreasing (but not negative)?
ANS:
Diminishing marginal product of labor means that the last worker hired contributes less to the total output of the firm than the worker who was hired just previous to her Negative marginal product of labor suggests that the last person hired actually causes total output of the firm to decline The firm evaluates the benefit of hiring (added revenue) versus the added cost of hiring (wage) In competitive markets, the cost and benefit converge only when marginal product declines If the marginal product of labor is negative, hiring an additional worker would actually decrease revenue A profit-maximizing firm would never choose to operate where marginal product is rising becausehiring an additional worker would increase the “value” a worker contributes to the firm, while costs remain constant.Thus, the firm will choose to operate where marginal product of labor is decreasing
TOP: Diminishing marginal product MSC: Analytical
2 Explain how a firm values the contribution of workers to its profitability Would a profit-maximizing
competitive firm ever stop increasing employment as long as marginal product is rising? Explain your answer.ANS:
A firm values the contribution of a worker by evaluating the worker's individual contribution to firm revenue This
is done by multiplying the worker’s marginal product by the output price received for his production A maximizing firm would never choose to operate where marginal product is rising because hiring an additional worker would increase the "value" a worker contributes to the firm and cost would remain constant As such, value and cost diverge as long a marginal product is increasing, and it is always more profitable to continue to hire more workers
MSC: Analytical
3 In the 1980s, the dangerous Ebola virus entered the United States through contaminated monkeys that were imported for use in medical experiments Suppose this virus had not been contained but had spread to the general population Assume that the virus is lethal in half of the people who are exposed to it Describe the resulting effect on labor productivity
ANS:
There are two possible direct effects: One effect would be that people would be absent from work if they caught the virus (but did not die) and so marginal productivity would be higher for the remaining workers The other effect is that people who caught the virus would die, the labor supply would decrease, and the remaining workers would have
a higher marginal product of labor While the marginal productivity of the remaining workers increases, total output would still fall
MSC: Analytical
Trang 75 A recent flood in the Midwest has destroyed much of the farmland that lies in fertile regions near the rivers Describe the effect of the flood on the marginal productivity of land, labor, and capital How would the flood affect the price of inputs? Provide some examples.
ANS:
The flood would increase the marginal product of unflooded land, lower the marginal product of labor, and lower the marginal product of capital As such, the price of unflooded land should rise, and the prices of both labor and capital should fall
MSC: Analytical
6 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
ANS:
Equilibriums in the markets for land and capital are governed by the value of marginal product for these factors relative to their supply One difference between these markets and the market for labor is that in land and capital markets there is both a rental value (flow) and purchase price (stock) The difference between the rental value and purchase price is reconciled by noting that in efficient markets, the purchase price should reflect the value of the stream of services provided by the land or capital (or the sum of rental values appropriately discounted)
TOP: Capital markets | Land markets MSC: Analytical
7 Describe the difference between the purchase price of capital and the rental price of capital If you know the value of marginal product from the flow of capital services, how would you determine the market price for thecapital stock?
ANS:
The purchase price of capital is a reflection of the flow of value in using that capital to produce goods and services over its life span The rental price of capital is the period-specific contribution of capital to production of goods and services The discounted present value of rental prices over the life of the capital equipment should be equal to its purchase price
MSC: Definitional
2 Capital, labor, and land
a have derived demands
b are factors of production
c are inputs used in the production of goods and services
d All of the above are correct
MSC: Definitional
Trang 83 Most of the total income earned in the U.S economy is ultimately paid to
a households in the form of wages and fringe benefits
b landowners in the form of rent
c landowners in the form of interest
d landowners in the form of profit
MSC: Definitional
Sec01 - The Markets for the Factors of Production - The Demand for Labor
MULTIPLE CHOICE
1 The production function is the
a increase in the amount of output from an additional unit of labor
b marginal product of an input times the price of output
c relationship between the quantity of inputs and output
d shift in labor demand caused by a change in the price of output
MSC: Definitional
Trang 9Table 18-1
Number of
Workers (L)
Output of Firm A
Output of Firm B
Output of Firm C
Output of Firm D
LOC: Labor markets TOP: Diminishing marginal product
MSC: Analytical
Scenario 18-1
Harry owns a snow-removal business He hires workers to shovel driveways for him during the winter The first worker he hires can shovel twelve driveways in one day When Harry hires two workers, they can shovel a total of
22 driveways in one day When Harry hires a third worker, he shovels an additional eight driveways in one day
3 Refer to Scenario 18-1 What is the marginal productivity of the second worker?
a 7
b 10
c 12
d 22
LOC: Labor markets TOP: Marginal product of labor
LOC: Labor markets TOP: Marginal product of labor
MSC: Analytical
5 Refer to Scenario 18-1 Suppose that Harry pays each worker $80 per day and that he charges each
customer $20 to have his driveway shoveled What is the value of the marginal product of labor for the second worker?
a $200
b $240
c $800
d $960
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
Trang 106 Refer to Scenario 18-1 Suppose that Harry pays each worker $80 per day and that he charges each
customer $20 to have his driveway shoveled What is the value of the marginal product of labor for the third worker?
a $160
b $640
c $1,600
d $2,400
LOC: Labor markets TOP: Value of the marginal product
LOC: Labor markets TOP: Marginal product of labor
LOC: Labor markets TOP: Marginal product of labor
MSC: Analytical
9 Refer to Table 18-2 Suppose this firm charges a price of $5 per unit of output and pays workers a
wage equal to $160 per day What is the value of the marginal product of labor for the second worker?
a $300
b $650
c $9,600
d $20,800
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
Trang 1110 Refer to Table 18-2 Suppose this firm charges a price of $5 per unit of output and pays workers a
wage equal to $160 per day What is the value of the marginal product of labor for the fourth worker?
a $200
b $1,000
c $6,400
d $32,000
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
11 Refer to Table 18-2 Suppose this firm charges a price of $5 per unit of output and pays workers a
wage equal to $160 per day How many workers should this firm hire to maximize its profit?
a 2 workers
b 3 workers
c 4 workers
d 5 workers
LOC: Labor markets
TOP: Value of the marginal product | Profit maximization MSC: Analytical
12 The value of the marginal product of labor
a increases when the price of output decreases
b is the firm’s demand for labor
c equals the marginal product of labor divided by the wage rate
d All of the above are correct
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
13 Which of the following statements is correct?
a An increase in the supply of other factors, such as capital, will increase the demand for labor
b Labor-saving technology will increase the demand for labor
c Labor-augmenting technology will decrease the demand for labor
d A decrease in the price of output will increase the demand for labor
MSC: Interpretive
14 Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage If the firm pays a wage of $700 per week and the marginal product of labor equals 20 units per week, then the marginal cost of producing an additional unit of output is
a $35
b $70
c $700
d We do not have enough information to answer this question
LOC: Labor markets TOP: Marginal product of labor
MSC: Analytical
Trang 1215 Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage If the firm pays a wage of $700 per week and the marginal product of labor equals 100 units per week, then the marginal cost of producing an additional unit of output is
a $7
b $70
c $700
d We do not have enough information to answer this question
LOC: Labor markets TOP: Marginal product of labor
16 Refer to Figure 18-1 The figure illustrates the
a demand for labor
b supply of labor
c production function
d wage function
LOC: The study of economics, and definitions of economics TOP: Production function
LOC: The study of economics, and definitions of economics TOP: Marginal product of laborMSC: Applicative
Trang 1318 Refer to Figure 18-1 The marginal product of the fourth worker is
a 60 units of output
b 75 units of output
c 285 units of output
d 345 units of output
LOC: The study of economics, and definitions of economics TOP: Marginal product of labor
MSC: Applicative
19 Refer to Figure 18-1 Suppose the firm hires each unit of labor for $600 per week, and each unit of
output sells for $9 What is the value of the marginal product of the third worker?
a $540
b $600
c $675
d $810
MSC: Applicative
20 Refer to Figure 18-1 Suppose the firm sells its output for $12 per unit, and it pays each of its
workers $700 per week The value of the marginal product of the fifth worker is
a $540
b $700
c $720
d $1,080
MSC: Applicative
21 Refer to Figure 18-1 Suppose the firm hires each unit of labor for $700 per week, and each unit of
output sells for $9 How many workers will the firm hire to maximize its profit?
a 2
b 3
c 4
d 5
LOC: Labor markets TOP: Marginal revenue product | Profit maximization
MSC: Applicative
22 Refer to Figure 18-1 Suppose the firm sells its output for $12 per unit, and it pays each of its
workers $700 per week How many workers will the firm hire to maximize its profit?
a 2
b 3
c 4
d 5
LOC: Labor markets TOP: Marginal revenue product | Profit maximization
MSC: Applicative
Trang 1423 Refer to Figure 18-1 Suppose the firm sells its output for $15 per unit, and it pays each of its
workers $750 per week When output increases from 210 units to 285 units,
a the marginal cost is $10 per unit of output
b the marginal revenue is $5 per unit of output
c the value of the marginal product of labor is $4,275
d the firm’s profit decreases
LOC: Labor markets
TOP: Marginal cost | Marginal revenue | Marginal revenue product
MSC: Applicative
24 Refer to Figure 18-1 Suppose the firm sells its output for $10 per unit, and it pays each of its
workers $400 per week When the number of workers increases from 4 to 5,
a the marginal revenue is $450 per unit of output and the marginal cost is $400 per unit of output
b the value of the marginal product of labor is $3,900 and the marginal cost per unit of output is
$400
c the value of the marginal product of labor is $450 and the marginal cost per unit of output is about
$8.89
d the firm’s profit increases
LOC: Labor markets
TOP: Marginal revenue | Marginal cost | Marginal revenue product
MSC: Applicative
25 Refer to Figure 18-1 Suppose the firm sells its output for $25 per unit, and it pays each of its
workers $1,000 per week Also, the firm’s non-labor costs are fixed and they amount to $2,000 The firm maximizes profit by hiring
a 2 workers
b 3 workers
c 4 workers
d 5 workers
MSC: Applicative
26 Refer to Figure 18-1 Suppose the firm sells its output for $20 per unit, and it pays each of its
workers $1,250 per week The firm maximizes profit by hiring
a 3 workers
b 4 workers
c 5 workers
d 6 workers
MSC: Analytical
27 Refer to Figure 18-1 The shape of the curve suggests the presence of
a an inverted production function
b diminishing total product
c increasing marginal product
d diminishing marginal product
LOC: Labor markets TOP: Diminishing marginal product
MSC: Analytical
Trang 15Figure 18-2 The figure shows a particular firm’s value-of-marginal-product (VMP) curve On the horizontal axis,
L represents the number of workers The time frame is daily.
VMP
4080120160200240280320360
400 VMP
28 Refer to Figure 18-2 The value-of-marginal-product curve that is drawn could be relabeled as the
firm’s
a production function
b total revenue curve
c labor supply curve
d labor demand curve
LOC: Labor markets TOP: Marginal revenue product | Labor demand
MSC: Interpretive
29 Refer to Figure 18-2 The firm would choose to hire three workers if
a the market wage for a day’s work is $220
b the market wage for a day’s work is $260
c the output price is $220
d the output price is $260
MSC: Applicative
30 Refer to Figure 18-2 Suppose the marginal product of the fifth unit of labor is 30 units of output
per day The figure implies that the
a price of output is $4
b price of output is $6
c price of output is $8
d daily wage is $120
MSC: Applicative
31 Refer to Figure 18-2 Suppose one point on the firm’s production function is
(L = 3, Q = 180), where L = number of workers and Q = quantity of output If the firm sells its output for
$5 per unit, then
a a second point on the firm’s production function is (L = 4, Q = 216).
b the firm’s production function exhibits the property of diminishing marginal product of labor
c the firm will maximize profit by hiring four workers if it pays workers $160 per day
d All of the above are correct
LOC: Labor markets TOP: Marginal revenue product | Profit maximization
MSC: Applicative
Trang 1632 Refer to Figure 18-2 Assume the following:
• Two points on the firm’s production function are (L = 2, Q = 180) and (L = 3, Q = 228),
where L = number of workers and Q = quantity of output
• The firm pays its workers $120 per day
• The firm’s non-labor costs are fixed and they amount to $250 per day
We can conclude that
a the firm sells its output for $12 per unit
b if the firm is currently employing 2 workers per day, then profit could be increased by $48 per day
if a third worker is hired
c the marginal cost per unit of output is $2.50 when output is increased from 180 units per day to 228units per day
d the firm’s maximum profit occurs when it hires 3 workers per day
LOC: Labor markets
TOP: Marginal cost | Marginal revenue product | Profit maximization
MSC: Analytical
33 The factors of production are best defined as the
a output produced from raw materials
b inputs used to produce goods and services
c wages paid to the workforce
d goods and services sold in the market
d All of the above are correct
MSC: Definitional
Trang 1737 Factor markets are different from product markets in an important way because
a equilibrium is the exception, and not the rule, in factor markets
b the demand for a factor of production is a derived demand
c the demand for a factor of production is likely to be upward sloping, in violation of the law of
demand
d All of the above are correct
MSC: Interpretive
38 Factor-market analysis could not be complete without some characterization of
a product-market demand
b the marginal productivities of the different factors
c market prices for final goods and services
d All of the above are correct
MSC: Interpretive
39 The basic tools of supply and demand apply to
a markets for goods and services and to markets for labor services
b markets for goods and services but not to markets for labor services
c markets for goods and services but not to markets for factors of production
d all markets except those in which demand is derived demand
MSC: Interpretive
40 Labor markets are different from most other markets because labor demand is
a represented by a vertical line on a supply-demand diagram
b represented by an upward-sloping line on a supply-demand diagram
c such an elusive concept
d a derived demand
MSC: Interpretive
41 Which of the following best illustrates the concept of "derived demand?"
a An increase in the wages of auto workers will lead to an increase in the demand for robots in
automobile factories
b An automobile producer's decision to supply more cars will lead to an increase in the demand for
automobile production workers
c An automobile producer's decision to supply more minivans results from a decrease in the demand for station wagons
d An increase in the price of gasoline will lead to an increase in the demand for small cars
MSC: Interpretive
Trang 1842 When a firm maximizes profit,
a it will hire workers up to the point where the marginal product of labor is equal to the product price
b it will hire workers up to the point where the marginal product of labor is equal to the wage
c it will hire workers up to the point where the value of the marginal product of labor is equal to the product price
d it will hire workers up to the point where the value of the marginal product of labor is equal to the wage
MSC: Interpretive
43 For a competitive, profit-maximizing firm, the labor demand curve is the same as the
a marginal cost curve
b value of marginal product curve
c production function
d profit function
MSC: Analytical
44 Which of the following is true at the level of output at which a competitive firm maximizes profit?
a Price = marginal cost
b Price = Wage/Value of marginal product of labor
c Price = Marginal product of labor/wage
d All of the above are correct
MSC: Applicative
45 What causes the labor demand curve to shift?
(i) changes in productivity
(ii) changes in wages
(iii) changes in output prices
a (i) and (ii)
b (ii) and (iii)
c (i) and (iii)
d All of the above are correct
MSC: Applicative
46 If the price of airline tickets falls, what will happen to the demand curve for flight attendants?
a It will shift to the right
b It will shift to the left
c The direction of the shift is ambiguous
d It will remain unchanged
MSC: Applicative
Trang 1947 If the demand curve for beef shifts to the right, then the value of the marginal product of labor for butchers will
a rise
b fall
c remain unchanged
d rise or fall; either is possible
d rise or fall; either is possible
MSC: Applicative
50 Competitive firms hire workers until the additional benefit they receive from the last worker hired isequal to
(i) the additional cost of that worker
(ii) the wage paid to that worker
(iii) the marginal product of that worker
a (i) only
b (iii) only
c (i) and (ii)
d (ii) and (iii)
MSC: Analytical
51 Dan owns one of the many bakeries in New York City Which of the following events will lead to anincrease in Dan's demand for the services of bakers?
(i) The price of muffins increases (Muffins are Dan's specialty.)
(ii) Dan adds three new ovens to the kitchen area to help the bakers work faster
(iii) Local bakers form a union to protect themselves from low wages
a (i) and (ii)
b (ii) and (iii)
c (i) and (iii)
d All of the above are correct
MSC: Applicative
Trang 2052 John owns a number of hot dog stands in New York City He hires workers to sell hot dogs at his stands Which of the following events will lead to a decrease in John's demand for hot dog vendors?
a Hollywood glamorization of a new movie about a hot dog vendor leads hundreds of high-school
students in New York City to apply for a job at John's
b The price of hot dogs falls
c The local hot dog vendors form a union increasing hot dog vendor wages
d The demand curve for hot dogs shifts to the right
MSC: Applicative
53 A sandwich shop hires workers to make sandwiches and sell them to customers If the firm is competitive in both the market for sandwiches and in the market for sandwich-makers, then it has
a some control over both the price of sandwiches and the wage it pays to its workers
b no control over the price of sandwiches but some control over the wage it pays to its workers
c some control over the price of sandwiches but no control over the wage it pays to its workers
d no control over either the price of sandwiches or the wage it pays to its workers
MSC: Applicative
54 Which of the following events could increase the demand for labor?
a A decrease in output price
b A decrease in the amount of capital available for workers to use
c An increase in the marginal productivity of workers
d A decrease in the wage paid to workers
MSC: Applicative
55 Which of the following events could decrease the demand for labor?
a An increase in the number of migrant workers
b An increase in the marginal productivity of workers
c A decrease in demand for the final product produced by labor
d A decrease in the supply of labor
b minimize variable costs
c maximize the number of workers hired
d maximize profit
MSC: Interpretive
Trang 2157 Suppose that a new invention increases the marginal productivity of labor, shifting labor demand to the right Such an invention would be an example of
a labor-saving technology
b labor-augmenting technology
c Luddite technology
d supply-shifting technology
MSC: Definitional
59 Labor-saving technology causes which of the following?
(i) The marginal productivity of labor increases
(ii) The marginal productivity of labor decreases
(iii) Labor demand shifts to the right
(iv) Labor demand shifts to the left
a (i) only
b (ii) only
c (i) and (iii)
d (ii) and (iv)
MSC: Interpretive
60 Labor-augmenting technology causes which of the following?
(i) The marginal productivity of labor increases
(ii) The marginal productivity of labor decreases
(iii) Labor demand shifts to the right
(iv) Labor demand shifts to the left
a (i) only
b (ii) only
c (i) and (iii)
d (ii) and (iv)
MSC: Interpretive
61 The term Luddite is used to describe
a a person who readily adopts the latest technological advances
b a person who is opposed to a reduction in the number of immigrants that are allowed into the
country each year
c a person who opposes technological advance
d any mythical historical figure
MSC: Definitional
Trang 2262 A Luddite would be expected to oppose
a working more than eight hours per day
b technological advance
c national policies that limit immigration into the country
d the use of economic models to demonstrate market equilibrium
MSC: Interpretive
63 Along the vertical axis of the production function we typically measure
a revenue
b the marginal product of the input
c the quantity of input
d the quantity of output
MSC: Definitional
64 Along the horizontal axis of the production function we typically measure
a revenue
b the marginal product of the input
c the quantity of input
d the quantity of output
MSC: Definitional
65 A competitive firm sells its output for $30 per unit The marginal product of the 10th worker is 20 units of output per day; the marginal product of the 11th worker is 16 units of output per day The firm pays its workers a wage of $150 per day
a For the 11th worker, the value of the marginal product of labor is $120
b For the 11th worker, the value of the marginal product of labor is $480
c For the 11th worker, the value of the marginal product of labor is $600
d For the 11th worker, the value of the marginal product of labor is $2,400
MSC: Analytical
66 A competitive firm sells its output for $25 per unit The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per day The firm pays its workers a wage of $160 per day
a For the 10th worker, the value of the marginal product of labor is $50
b For the 10th worker, the value of the marginal product of labor is $250
c For the 10th worker, the value of the marginal product of labor is $300
d For the 10th worker, the value of the marginal product of labor is $1,500
MSC: Analytical
Trang 2367 Prairie Cabinets produces and sells custom kitchen cabinets The firm has determined that if it hires
10 workers, it can produce 10 sets of cabinets per day If it hires 11 workers, it can produce 12 sets
of cabinets per day It sells each set of cabinets for $2,000, and it pays each of its workers $200 per day Which of the following is correct?
a For the 11th worker, the value of the marginal product of labor is $400
b For the 11th worker, the value of the marginal product of labor is $4,000
c The firm should not hire the 11th worker since hiring this worker reduces profit
d In order to justify hiring the 11th worker the firm will need to raise the price of a set of cabinets
MSC: Analytical
68 For a competitive, profit-maximizing firm, the demand curve for labor will shift in response to a change in the
a wage rate
b quantity of labor demanded
c price of the product that the firm sells
d an increase in the supply of labor
MSC: Applicative
69 Omega Custom Cabinets produces and sells custom bathroom vanities The firm has determined that
if it hires 10 workers, it can produce 20 vanities per week If it hires 11 workers, it can produce 22 vanities per week It sells each vanity for $800, and it pays each of its workers $1,000 per week Which of the following is correct?
a For the 11th worker, the marginal profit is $600
b For the 11th worker, the marginal revenue product is $2,000
c The firm is maximizing its profit
d If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers
MSC: Analytical
70 Suppose a labor-augmenting technology were developed for a product that increased the marginal product of labor for all workers Which of the following would happen in the labor market for this product?
a Demand would decrease
b Demand would increase
c Supply would decrease
d Supply would increase
MSC: Applicative
Trang 24Scenario 18-2
Gertrude Kelp owns three boats that participate in commercial fishing for fresh Pacific salmon off the coast of Alaska As part of her business she hires a captain and several crew members for each boat In the market for fresh Pacific salmon, there are thousands of firms like Gertrude's While Gertrude usually catches a significant number of fish each year, her contribution to the entire harvest of salmon is negligible relative to the size of the market
71 Refer to Scenario 18-2 Based on the given information, it is likely that Gertrude's firm has
a some influence over the wages paid to crew members but no influence over the price of salmon
b some influence over the price of salmon but no influence over the wages paid to crew members
c some influence over both the price of salmon and the wages paid to crew members
d no influence over either the price of salmon or the wages paid to crew members
MSC: Applicative
72 Refer to Scenario 18-2 When Gertrude participates in the labor market to hire crew members for
her boats, she is most likely considered a
a demander of labor services
b supplier of labor services
c demander of capital
d supplier of capital
MSC: Applicative
73 Refer to Scenario 18-2 If the price of fresh Pacific salmon were to decrease significantly, it is most
likely that Gertrude would
a reduce her demand for crew members
b hire more boats
c become a seller in at least one factor market
d hire more crew members
MSC: Applicative
74 Refer to Scenario 18-2 If Gertrude is a competitor in both the fresh Pacific salmon market and in
the market for crew members, she is called a price
a taker in the salmon market and a wage setter in the crew market
b taker in the crew market and a price setter in the salmon market
c taker in both markets
d setter in both markets
MSC: Applicative
75 Refer to Scenario 18-2 In the fresh Pacific salmon product market, Gertrude has some control over
a the price she charges for her fresh salmon
b the quantity of fresh salmon that she supplies to the market
c the competitive environment of the market
d the supply of labor in the market
MSC: Applicative
Trang 2576 Refer to Scenario 18-2 If Gertrude is a price taker in the labor market, she can choose
a the price at which she will sell the fish she catches
b how many crew members she will hire
c the wages that she will pay to her crew members
d All of the above
MSC: Applicative
77 Refer to Scenario 18-2 Labor-market theory assumes that Gertrude's demand for crew members
and her supply of fresh Pacific salmon result from her
a intrinsic desire to hire crew members
b primary goal of maximizing profit
c altruistic motives to provide fresh salmon to consumers
d desire to strike a balance between environmental concerns and maximum profit
MSC: Applicative
78 The following table shows the number of calculators that can be assembled per week by various numbers of workers If the price per calculator in a perfectly competitive product market is $8, how many workers would the firm employ if the weekly wage rate is $800?
Quantity of Number of Calculators
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Analytical
79 Bill is trying to convince the owner of a pizza shop to hire him He argues that he could help the shop sell an additional five pizzas per day at the market price of $8 each If the facts are not in dispute, but the owner does not hire him, then
a the wage rate must be less than $40 per day
b hiring Bill would involve a negative marginal product
c the wage rate must be more than $40 per day
d the wage rate must be less than $8 per day
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Analytical
Trang 2680 Suppose that eight workers can manufacture 70 radios per day and that nine workers can
manufacture 90 radios per day If radios can be sold for $10 each, the value of marginal product of the ninth worker is
a 20 radios
b 90 radios
c $200
d $900
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
81 Value of marginal product is defined as the additional
a output a firm would receive after hiring one more factor of production
b cost of hiring one more factor of production
c revenue earned from selling one more unit of product
d revenue earned from hiring one more factor of production
LOC: Labor markets TOP: Value of the marginal product
MSC: Definitional
82 The marginal product of labor is defined as the change in
a output per additional unit of revenue
b output per additional unit of labor
c revenue per additional unit of labor
d revenue per additional unit of output
LOC: Labor markets TOP: Marginal product of labor
MSC: Definitional
83 The marginal product of labor is
a the increase in the amount of output from an additional unit of labor
b the total amount of output divided by the total units of labor
c total revenue minus total cost
d also called the marginal profit
LOC: Labor markets TOP: Marginal product of labor
MSC: Definitional
Trang 27Table 18-3
Quantity of Number of Baseballs
84 Refer to Table 18-3 This table describes the number of baseballs a manufacturer can produce per
day with different quantities of labor Each baseball sells for $5 in a competitive market For which level of employment is the marginal product of labor greatest?
a 1 worker
b 2 workers
c 3 workers
d 4 workers
LOC: Labor markets TOP: Marginal product of labor
MSC: Analytical
85 Refer to Table 18-3 This table describes the number of baseballs a manufacturer can produce per
day with different quantities of labor Each baseball sells for $5 in a competitive market What is thetotal revenue per day that the firm will earn if it employs five workers?
a $500
b $300
c $2,200
d $2,500
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Analytical
86 Refer to Table 18-3 This table describes the number of baseballs a manufacturer can produce per
day with different quantities of labor Each baseball sells for $5 in a competitive market What is themarginal revenue product of the third worker?
a 120 baseballs
b $300
c $400
d $600
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
87 Refer to Table 18-3 This table describes the number of baseballs a manufacturer can produce per
day with different quantities of labor Each baseball sells for $2.50 in a competitive market What is the marginal revenue product of the fourth worker?
a $200
b $300
c $400
d $500
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
Trang 2888 Refer to Table 18-3 This table describes the number of baseballs a manufacturer can produce per
day with different quantities of labor Each baseball sells for $5 in a competitive market and the firmpays each unit of labor a wage equal to $320 per day How many units of labor should the firm hire
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
89 Refer to Table 18-3 This table describes the number of baseballs a manufacturer can produce per
day with different quantities of labor Each baseball sells for $2.50 in a competitive market and the firm pays each unit of labor a wage equal to $225 per day How many units of labor should the firmhire to maximize profit?
a 2 units
b 3 units
c 4 units
d 5 units
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
90 When labor is the only input a firm uses, the marginal cost of a unit of output can be defined as
a the marginal revenue multiplied by the wage
b the marginal product of labor multiplied by the wage
c the wage divided by the marginal product of labor
d the marginal product of labor divided by the wage
MSC: Analytical
Trang 29Table 18-4
Consider the following daily production data for Wills Golf Balls Wills sells golf balls for $2.50 cents each and pays the workers a wage of $325 per day
Labor (number
of workers) Quantity (golf
balls per day)
Marginal Product of Labor (golf balls per day)
Value of the Marginal Product of Labor
Wage (per day)
Marginal Profit
LOC: Labor markets TOP: Marginal product of labor
LOC: Labor markets TOP: Marginal product of labor
LOC: Labor markets TOP: Marginal product of labor
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
Trang 3095 Refer to Table 18-4 What is the value of the marginal product of the fifth worker?
a $120
b $300
c $2,000
d $2,300
LOC: Labor markets TOP: Value of the marginal product
LOC: Labor markets TOP: Value of the marginal product
LOC: Labor markets TOP: Diminishing marginal product
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Analytical
100 Refer to Table 18-4 Assuming Wills is a competitive, profit-maximizing firm, how many workers
will the firm hire?
a 3 workers
b 4 workers
c 5 workers
d 6 workers
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Analytical
Trang 31101 Refer to Table 18-4 Assume that Wills is a competitive, profit-maximizing firm If the market
price of golf balls decreases from $2.50 to $2.00, how many workers would the firm then hire?
a 2 workers
b 3 workers
c 4 workers
d 5 workers
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Analytical
102 Refer to Table 18-4 Suppose that there is a technological advance that allows Wills employees to
produce more golf balls than they could before Because of this change,
a the firm’s demand for labor shifts right
b the firm’s demand for labor shifts left
c the firm’s supply of labor shifts right
d the firm’s supply of labor shifts left
MSC: Analytical
103 For maximum profit, a firm hires labor up to the point at which the wage equals
(i) the value of the marginal product of labor
(ii) the marginal cost of an additional unit of output
(iii) output price multiplied by the marginal product of labor
a (i) and (ii)
b (i) and (iii)
c (ii) and (iii)
d All of the above are correct
LOC: Labor markets TOP: Labor demand | Value of the marginal product
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Analytical
Trang 32105 Refer to Table 18-5 It is apparent from this table that increasing marginal product
a occurs only after the first worker is hired
b occurs only after the second worker is hired
c occurs only after the third worker is hired
d never occurs
LOC: Labor markets TOP: Marginal product of labor
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
LOC: Labor markets TOP: Marginal product of labor
MSC: Analytical
108 Refer to Table 18-5 The fact that the marginal product falls as the number of workers increases
illustrates a property called
a diminishing marginal product
b utility maximization
c supply and demand
d labor theory
LOC: Labor markets TOP: Diminishing marginal product
MSC: Definitional
109 Refer to Table 18-5 The fact that the production function exhibits diminishing marginal
productivity implies that
a total production decreases beyond a certain level of output
b labor markets are not always competitive
c the additions to total output get smaller as more workers are hired
d marginal profit is negative
LOC: Labor markets TOP: Diminishing marginal product
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Analytical
Trang 33111 Refer to Table 18-5 What is the fourth worker's marginal revenue product?
a $100
b $40
c $400
d $500
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Analytical
113 Refer to Table 18-5 To maximize its profit, the firm will hire workers as long as the value of the
marginal product of labor equals or exceeds
a $100
b $200
c $400
d $500
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical
114 Which of the following statements is correct?
a The value of the marginal product curve is the labor demand curve for competitive,
profit-maximizing firms
b A competitive, profit-maximizing firm hires workers up to the point where the value of the
marginal product of labor equals the wage
c By hiring labor up to the point where the value of the marginal product of labor equals the wage,
the firm is producing where price equals marginal cost
d All of the above are correct
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Interpretive
115 Dave is the owner of Dave's Pizza Palace Dave is a profit-maximizing owner whose firm operates
in a competitive market An additional worker costs Dave $200 and has a marginal productivity of
40 pizzas Assuming no other variable costs, what is the marginal cost of a pizza?
a $200
b $8
c $5
d There is insufficient information available to answer this question
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
MSC: Analytical
Trang 34116 Sally runs a hair styling salon Sally is a profit-maximizing owner whose firm operates in a
competitive market The marginal cost of a haircut is $7 What is the maximum wage that Sally will pay her stylists?
a less than $7 per haircut
b $7 per haircut
c more than $7 haircut
d There is insufficient information to answer this question
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
d There is insufficient information to answer this question
LOC: Labor markets
TOP: Marginal product of labor | Value of the marginal product
LOC: Labor markets TOP: Value of the marginal product
LOC: Labor markets
TOP: Value of the marginal product | Marginal product of labor
MSC: Analytical
Trang 35Marginal Profit
LOC: Labor markets TOP: Value of the marginal product
LOC: Labor markets TOP: Value of the marginal product
LOC: Labor markets TOP: Marginal product of labor
LOC: Labor markets TOP: Value of the marginal product
MSC: Analytical