Q&A Hero

Q:

Q:

Q:

Q:

Q:

Q:

Q:

Q:

Q:

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?

Q:

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

Q: Refer to the following figure to answer the following questions:If the price of the product is $20, then what is the value of the marginal product of labor (VMPL) of the fourth worker?a. $40 b. $20 c. $300d. $80e. $420

Q: Refer to the following figure to answer the following questions:What is the marginal product of the fourth worker?a. 3.75 units b. 15 units c. 2 unitsd. 1 unite. 4.67 units

Q: Suppose that a profit-maximizing firm in a competitive market hires labor up to the point at which the value of the marginal product equals the wage and that labor is the only variable input. The price of the product is $150 per unit. 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 isa. $35. b. $70.c. $14,000 divided by total output.d. $3,000 divided by total output.e. $4.29.

Q: A profit-maximizing firm in a competitive market will employ more workers until the a. marginal product equals the wage. b. marginal product equals zero. c. marginal revenue product equals zero. d. marginal revenue product equals marginal cost. e. value of the marginal product equals the wage.

Q: The value of the marginal product is a. total output divided by total inputs. b. the marginal product of an input times the price of the output. c. the change in total output divided by the change of an input. d. total revenue minus total cost. e. marginal revenue minus marginal cost.

Q: If a profit-maximizing firm hires its eleventh worker, then it can be inferred that when the firm hired the first 10 workers, the a. wage was larger than the value of the marginal product of labor (VMPL). b. value of the marginal product of labor (VMPL) was larger than the wage. c. marginal product of labor was increasing. d. market was becoming less competitive. e. labor demand curve of this firm was becoming more steep.

Q: One of the primary causes of diminishing marginal product isa. increasing marginal cost. b. increasing price. c. decreasing marginal cost.d. diminishing total cost.e. diminishing average fixed cost.

Q: A profit-maximizing firm in a competitive market that is producing on a production curve where the marginal product of labor is diminishing also has a. an upward-sloping labor demand curve. b. a downward-sloping labor demand curve. c. a perfectly elastic labor supply curve. d. a perfectly inelastic labor supply curve. e. a perfectly inelastic labor demand curve.

Q: How does diminishing marginal product affect the shape of the production function? a. The slope of the production function increases as the quantity of input increases. b. The slope of the production function becomes more positive with diminishing marginal product. c. The slope of the production function becomes horizontal once diminishing marginal product is achieved. d. The slope of the production function decreases as the quantity of input increases. e. The slope of the production function is not affected by diminishing marginal product.

Q: Markets for people who work on bicycles are influenced by a. demand for bicycles. b. supply of bicycles. c. price elasticity of demand for bicycles. d. cross-price elasticity of bicycle helmets. e. miles of bike lanes.

Q: The markets for factors of production differ from markets for products in an important aspect because a. markets for factors are rarely in equilibrium, whereas markets for products are usually in equilibrium. b. demand for factors of production is a derived demand. c. the shape of the products demand curve will be more elastic than the shape of the factors demand curve. d. supply of a factor is dependent on the supply of a product. e. the shape of the products supply curve will be more elastic than the shape of the factors supply curve.

Q: Because a products demand for an input to its production depends on the decision to produce this product, it is called ________ demand.a. dependent b. secondary c. derivedd. productione. input

Q: Which of the following is an example of derived demand? a. Economic actions that decrease labor demand will lower wages. b. More highly educated workers earn more than less-educated workers. c. Garment industry demand for workers who sew depends on the number of garments produced. d. A lower price for pencils will lead to fewer pencil workers. e. A citrus disease will raise citrus fruit prices, leading to more fruit produced by plantations not affected by the disease.

Q: The most important aspect(s) of labor, land, and capital is/are that they a. have derived demands. b. are factors of production. c. are inputs to the production process. d. are resources in our economy. e. have derived demands and are factors of production, inputs to the production process, and resources in our economy.

Q: Which of the following are the three factors of production?a. labor, business, factories b. land, labor, capital c. workers, government, businessd. capital, government, lande. business, land, labor

Q: Which of the following is an example of a factor of production? a. Medicare support payments b. workers hired to repair worn-out furniture c. interest on loans to purchase more capital d. rent on agricultural land e. profits paid to Apple stores

Q: Factors of production are another term for the a. multiplier (factor) by which production can be increased by using new technology. b. certain technical aspects (factors such as temperature and humidity) by which more output is produced. c. accounting techniques (factors) used to report increased production. d. aspects (factors) by which production determines derived demand. e. inputs (factors) to the production process.

Q: Income in the U.S. economy consists of a. wages and benefits paid to laborers. b. wages and benefits paid to laborers and profits to businesses. c. profits to businesses, interest to capital lenders, and rent to landowners. d. rent to landowners and profits to businesses. e. wages and benefits to laborers, and profits to businesses.

Q: Which factor of production earns the most income in the U.S. economy?a. labor b. capital c. landd. entrepreneurshipe. government

Q: About what percent of the U.S. income is earned in wages and benefits?a. 40 b. 72 c. 67d. 33e. 60

Q: Of the total income earned in the U.S. economy, about a. 67 percent is earned by landowners, while 33 percent is earned by capitalists. b. 50 percent is earned by laborers, 25 percent by landowners, and 25 percent by capital lenders. c. 40 percent is earned by government, 50 percent by landowners, and 10 percent by laborers. d. 67 percent is earned by laborers, and 33 percent is earned by other factors. e. 51 percent is earned by laborers, and 49 percent is earned by land and capital owners.

Q: Most of the total income made in the U.S. economy is paid asa. profits to businesses. b. interest to capital lenders. c. rent to building owners.d. wages and benefits to laborers.e. taxes to government.

Q: A firm is currently using two inputs: labor and capital. It rents equipment for $1,000, which produces a value of the marginal product of $5,000. It hires workers at $10 per hour, who produce a value of the marginal product of $100. The wages of workers rise by 20 percent and the rental price of capital increases by 25 percent. The firm should hire ________ labor and ________ capital. a. more; more b. more; less c. the same amount of; the same amount of d. less; more e. less; less

Q: You know that the rental price of capital is $3,000, the rental price of land is $2,000, and the wage of labor is $100. The value of the marginal product produced by each factor is $30,000, $4,000, and $200, respectively. You would advise the company to hire morea. labor. b. land. c. capital.d. less labor and more land.e. less capital and more labor.

Q: Companies can rent a manufacturing robot named RoboMan for $2,500 a month and must pay workers $20 an hour. The value of the marginal product of RoboMan is $5,000, and the value of the marginal product of labor is $20. Companies should hire ________ RoboMen and ________ workers.a. more; fewer b. more; morec. fewer; fewerd. fewer; moree. the same amount of; more

Q: It is profitable for Jacks Jingles to use more equipment in the production of its songs when thea. rental price of land decreases. b. rental price of capital increases. c. wages of workers falls.d. rental price of capital decreases.e. marginal product of labor falls.

Q: If there is a massive wave of immigration, the wages of workers ________ and it is more profitable for firms to use more ________.a. drop; capital and fewer workers b. increase; land and fewer workers c. increase; capital and less landd. drop; workers and less capitale. increase; workers and less land

Q: Assume that the Welter Company is renting capital and hiring labor such that the bang per buck from each resource is the same. If wages of labor increase, its use of labor ________ and capital ________.a. increases; falls b. falls; falls c. increases; increasesd. stays the same; fallse. falls; increases

Q: If demand for land increases, the rental price ________ and the equilibrium amount of land ________.a. increases; falls b. decreases; increasesc. increases; increasesd. decreases; stays the samee. increases; stays the same

Q: A formerly quiet town with fantastic weather becomes the place to live for people from colder climates. We can expect the rental price of land to ________ and ________ land to be devoted to housing.a. decrease; more b. increase; less c. increase; mored. decrease; the same amount ofe. increase; the same amount of

Q: When a new major league baseball stadium is built in the suburbs of a large city, the rents of apartments surrounding the stadium skyrocket because a. the supply of the apartments is high. b. the amount of land available for apartments is fixed. c. stadium owners want the area to be upscale. d. everyone wants to live near a stadium. e. the players want to live nearby and can afford high rents.

Q: If Marguerite rents her land for $250/month and her next-best use of the land would earn her $100/month, her economic rent is ________.a. $250 b. $150 c. $100d. $75e. $25

Q: Where would economic rents be highest?a. Cincinnati, Ohio b. St. Louis, Missouri c. New York Cityd. Toledo, Ohioe. Grand Rapids, Michigan

Q: The rental price of land is the a. cost of leasing a piece of land for a determined time period. b. amount of money required to buy a piece of land. c. entire bill associated with maintaining land used in production. d. amount of money a firm could have made by using the land for another purpose. e. amount of money a firm pays to build a plant on a piece of land.

Q: Economic rent is a. what a landlord earns by leasing land or capital. b. the amount of money a person could have earned by using land for another purpose. c. the difference between the market price and the rental price of a piece of land. d. the difference between the rental price and the amount of money that could have been earned using the piece of land for another purpose. e. the profits earned by a firm in production.

Q: As Apples iPads become more popular, we can expect the wages of Apple workers with specific skills pertaining to the production of iPads to ________ relative to PC workers.a. increase b. stagnate c. decrease slowlyd. fall to the minimum wagee. decrease

Q: Tamars sister complains that Tamar gets paid considerably more as a caterer than she is paid as a chef, even though the careers are similar. What might explain this situation? a. People rarely hire caterers for their events and so are willing to pay a premium for the service. b. There are many chefs in town, but few caterers. c. The training required to be a chef is so advanced that people cannot afford her services. d. There are many substitutes for a chef. e. Tamars catering business can go to a persons residence, and her sisters position does not allow such mobility.

Q: What is the best economic explanation for the high pay earned by National Hockey League stars? a. There are many highly skilled players. b. They have superior bargaining skills in contract negotiations. c. Talent allows for higher pay. d. Fans want to see really good players, and team owners are willing to pay more for good players. e. The league is promoting these players.

Q: Which of the following situations describes a monopsony? a. Nicolette is an ice cream artist and several shops are hiring. b. Francine is the only teleport technician in the world. c. Fernando is an accountant in New York City. d. Leslie is a college instructor and there is only one university within 300 miles of her permanent residence. e. Leo is the only professional dog groomer in town.

Q: Kaitlin has recently been trained as a highly specialized medical physician. There is only one hospital that needs her services. Kaitlin can expect her wages to be ________ compared to what her wages would be in a situation of perfect competition.a. higher b. double c. halfd. the samee. lower

Q: A situation with only one buyer of labor is called a(n)a. monopoly. b. oligopoly. c. monopsony.d. labor market equilibrium.e. labor market disequilibrium.

Q: A company that produces simple textiles outsources its operations to Indonesia. Wages for Indonesian workers will ________ and their employment will ________.a. rise; rise b. fall; rise c. stay the same; falld. fall; stay the samee. fall; fall

Q: In the short run, wages in the home country will ________ when a company outsources its operations because labor demand in the home country has ________.a. rise; risenb. stay the same; fallen c. double; risend. fall by a third; risene. fall; fallen

Q: In theory, some people might lose in the short run from outsourcing, but in the long run, all should benefit. Which option demonstrates that this theory might NOT be true? a. Lower labor costs lead to lower prices, so more foreigners can buy imports. b. Income earned at outsourced jobs allows foreign workers to purchase imports. c. Lower prices allow more consumers to buy the good domestically. d. Outsourcing stimulates competition. e. Inadequate transition programs hinder the ability of domestic workers, who lost their jobs to outsourcing, to obtain new jobs.

Q: Companies outsource their operations because a. the weather is nicer in other countries. b. employees in other countries take less sick leave. c. governments in other countries allow them to operate. d. labor costs are lower. e. no one wants to do the work domestically.

Q: Which company is most easily able to outsource its operations and have its good or service produced in another country?a. Hannahs Hair Salons b. Darling Dentistry c. Queens Quiltsd. Busker Baseball Teame. Penelopes Fresh Pretzels

Q: Which position is most easily outsourced? a. a customer service representative at your local cable company b. a hair stylist c. a local town chocolatier d. a general practitioner doctor e. an economics professor

Q: Outsourcing is when a. consumers buy products made in another country. b. foreign consumers buy products made in the United States. c. U.S. firms shift jobs to outside the company. d. the costs of operating are higher in another country. e. the domestic labor supply shrinks.

Q: Mauna decides that worker turnover is too high at her firm. She hopes that by paying above-market wages, workers will stay longer. This may create a. a surplus of workers. d. a shortage of overtime. b. a surplus of jobs. e. no disequilibrium. c. a shortage of workers.

Q: Lorelei finds that she is consistently unable to fill all of the open positions at her bakery. This indicates that the wage she is offering is a. above the market rate. b. at the market rate. c. double what her competitors are offering their employees. d. half of what her competitors are offering their employees. e. below the market rate.

Q: The labor supply curve is given by the equation LS= 3W + 20 and the labor demand curve is given by the equation LD= 80 - 2W. If the wage is $20, there will be a ________ of ________ workers.a. surplus; 80 b. shortage; 40 c. shortage; 80d. surplus; 40e. surplus; 20

Q: There are four ice cream shops on a small tourist island. The following table shows the quantity of ice cream cones that each firm produces in a typical year and the price that each firm currently charges for each ice cream cone it sells. An economist might suspect ________ collusion occurring in this market where ________ is the price leader and all other firms set price to match the price leader.FirmQuantityPriceBlack Bear Cones 1,383$2.85Frozen Treat 2,410 2.89Cream Emporium27,377 2.99Royal Scoop 670 3.05a. explicit; Royal Scoop b. explicit; Cream Emporium c. illegal; Cream Emporiumd. tacit; Royal Scoope. tacit; Cream Emporium

Q: Use the following scenario to answer the following questions:Kit-N-Sit and Kittysitters are two cat-sitting services in Kent, Ohio. There are no other cat-sitting services, so the market is considered to be a duopoly.When firms in an oligopoly collude without an explicit agreement, economists say they are involved in ________ collusion.a. illegal b. tacit c. game theoreticd. predatorye. marginal

Q: According to the kinked demand curve theory, the behavior of firms in an oligopoly creates a demand curve that is ________ at prices above the cartel price and ________ at prices below the cartel price. a. downward-sloping; upward-sloping b. more inelastic; upward-sloping c. perfectly inelastic; downward-sloping d. more inelastic; more elastic e. more elastic; more inelastic

Q: The ________ demand curve theory states that oligopolists tend to respond aggressively to the price cuts of rivals, but largely ignore price increases.a. downward-sloping b. perfectly elastic c. kinkedd. upward-slopinge. jagged

Q: Marshals JPMorgan Chase credit card has a 15 percent interest rate and a rewards program that gives him one point per $1 that he spends. The only option Marshal has for point redemption is a $100 statement credit that would cost him 10,000 points. On January 7, 2012, Marshal noticed he has 8,750 reward points accumulated on his JPMorgan Chase card. On that same day, he received an offer from Bank of America for a credit card with an identical rewards program and an 8 percent interest rate. If Marshal cancels his JPMorgan Chase card and accepts the offer for the Bank of America card, the accumulated 8,750 reward points that he will not be able to redeem are an example of a ________ cost.a. network b. bandwagon c. cardd. credite. switching

Q: Terrances cell phone carrier would charge him $250 to cancel his current contract. If Terrance wants to change cell phone carriers, the $250 he would have to pay is considered a ________ cost.a. switching b. network c. bandwagond. contracte. staying

Q: The following table shows Alexis preference ranking for different brands of jeans for 2011 and 2012. His preferences are ranked from 1 to 4, where 4 is his most-preferred brand and 1 is his least-preferred brand. In 2011, 1,439 of the 28,000 men attending Alexis college owned a pair of Joes Jeans. In 2012, a survey showed that 9,421 of the 28,560 men attending Alexis college owned a pair of Joes Jeans. Based on this information, the change in Alexis preference ranking for Joes Jeans from 2011 to 2012 can be best explained by the ________ effect. Brand of Jeans2011 Preference Ranking2012 Preference RankingCitizens of Humanity22True Religion11Seven for All Mankind43Joeu2019s Jeans34a. jean stitching b. fashion inferiority complex c. oligopolistic pricingd. networke. sociological advocacy

Q: The following table shows Quintons preference ranking for different brands of boots in both 2011 and 2012. His preferences are ranked from 1 to 4, where 4 is his most-preferred brand and 1 is his least-preferred brand. In 2011, one of Quintons 10 close friends owned a pair of UGG boots. In 2012, six of Quintons 11 close friends owned a pair of UGG boots. Based on this information, which effect would likely explain the change in Quintons preference ranking for UGG boots from 2011 to 2012?Brand of Boots2011 Preference Ranking2012 Preference RankingAdidas32Clarks43ECCO11UGG24a. social norming b. superiority c. networkd. friendshipe. consumer preference

Q: In 2011, none of Rodericks friends owned a North Face jacket and Roderick did not have a strong preference for North Face jackets. In 2012, many of Rodericks friends owned a North Face jacket, and Roderick did have a strong preference for North Face jackets. The change in Rodericks preferences from 2011 to 2012 can be best explained by the ________ effect.a. winter b. network c. switchingd. duopoliste. social

Q: Firms with many customers that find it easier to attract new customers are most likely selling a good that has a ________ externality.a. consumption b. negative c. positived. productione. network

Q: The market for social-networking website services is characterized by network externalities because a. the less other people are using the website, the more any one person enjoys it. b. the number of other people using the website has no effect on any one persons enjoyment of it. c. the more other people are using the website, the more any one person enjoys it. d. a person needs a computer network to access a social-networking website. e. people are less likely to be hired by an employer if they use social-networking websites.

Q: When customers face significant switching costs, the a. demand for the existing product becomes more inelastic. b. supply for the existing product becomes more inelastic. c. demand for the existing product is perfectly inelastic. d. supply for the existing product is perfectly inelastic. e. demand for the existing product becomes neither perfectly elastic nor perfectly inelastic.

Q: The presence of significant positive ________ externalities can drive small firms out of business or force them to merge with larger competitors.a. network b. negative c. productiond. publice. size

Q: When customers face significant ________ costs, the demand for the existing product becomes more inelastic.a. network b. bandwagon c. switchingd. stayinge. marginal

Q: A ________ effect occurs when a buyers preference for a product increases as the number of people buying it increases.a. oligopoly b. switching c. networkd. duopolye. competitive

Q: If network externalities exist in an industry, the ________ firm to enter the market is often the one that succeeds in dominating the industry.a. first b. second c. thirdd. fourthe. fifth