Question :
61) If the wage rate increases, a firm’s demand for : 1238915
61) If the wage rate increases, a firm’s demand for labor curve
A) does not shift, and there is no movement along it.
B) shifts leftward.
C) shifts rightward only if the elasticity of demand for labor is elastic.
D) does not shift, but there is a movement along it.
E) shifts rightward only if the elasticity of demand for labor is inelastic.
62) The price of capital falls. Assuming that the firm does not increase the quantity it produces, in the long run the firm’s demand for labor curve
A) does not shift, and there is no movement along it.
B) shifts leftward.
C) shifts rightward only if the elasticity of demand for labor is elastic.
D) does not shift, but there is a movement along it.
E) shifts rightward only if the elasticity of demand for labor is inelastic.
63) The above figure shows the demand for labor curve for workers at a Pizza Hut in Canada. If the wage rate is $6 per hour, then the
i.quantity of workers Pizza Hut demands is 10 workers.
ii.Pizza Hut would have been willing to hire the 6th worker even if they had to pay $7 per hour rather than $6 per hour.
iii.value of the marginal product of the 10th worker is $6 per hour.
A) i only
B) ii only
C) iii only
D) i and iii
E) i, ii, and iii
64) The above figure shows the initial demand for labor curve at a Pizza Hut in Canada. The wage rate is $6 an hour. If the demand for pizzas increases so that the price of a pizza rises,
A) at the wage rate of $6 per hour, Pizza Hut hires fewer than 10 workers.
B) Pizza Hut’s demand for labor curve shifts rightward.
C) the supply of labor curve shifts rightward.
D) Pizza Hut’s demand for labor curve shifts leftward.
E) the supply of labor curve shifts leftward.
65) If the price of movie tickets increases, there is
A) an increase in the demand for actors and actresses.
B) a decrease in the demand for actors and actresses.
C) no change in the demand for actors and actresses.
D) a decrease in the supply of actors and actresses.
E) an increase in the supply of actors and actresses.
66) Robotic technology is a substitute for labor in many manufacturing processes. If the price of robotic technology decreases and the scale of the firm’s production does not change, there is
A) a decrease in the demand for labor.
B) an increase in the demand for labor.
C) no change in the demand for labor.
D) an increase in the supply of labor.
E) a decrease in the supply of labor.
67) If the price of capital falls, in the long run under what circumstance could the demand for labor increase?
A) The demand for labor can never increase when the price of capital falls.
B) The demand for labor will always increase when the price of capital falls.
C) It increases if the scale of production increases enough.
D) It increases if the demand for labor is inelastic.
E) None of the above answers is correct.
68) If the price of capital rises, in the long run the demand for labor
A) definitely increases.
B) definitely decreases.
C) definitely is unaffected.
D) could increase or decrease, depending on the change in the scale of production.
E) changes only if the supply of labor changes.
69) Which of the following is a correct statement of the relationship between advances in technology and the demand for labor?
A) The demand decreases for some types of labor and increases for other types of labor.
B) The demand for labor always decreases when technology advances.
C) The demand for labor always increases when technology advances.
D) Technology advances when the demand for labor advances.
E) None of the above answers is correct.
70) The four factors of production that produce goods and services are
A) labor, capital, profits, and entrepreneurship.
B) money, labor, rent, and profit.
C) labor, capital, land, and entrepreneurship.
D) wages, interest, rent, and profit.
E) wages, prices, quantities, and employment.
