Question :
11.1 The Competitive Labor Market
1) Which of the following statements : 1377462
11.1 The Competitive Labor Market
1) Which of the following statements is true?
A) Firms are the demanders in the market for labor as well as the market for consumer goods.
B) Firms are the suppliers in the market for labor as well as the market for consumer goods.
C) Firms are the demanders in the market for labor, whereas they are the suppliers in the market for consumer goods.
D) Firms are the suppliers in the market for labor, whereas they are the demanders in the market for consumer goods.
2) Which of the following is true of the market for labor?
A) Workers are the suppliers of labor.
B) Workers are the demanders of labor.
C) The labor supply curve is perfectly elastic.
D) The labor demand curve is perfectly elastic.
3) A factor of production refers to any good or service which is:
A) produced by the government.
B) produced in a competitive market.
C) used to produce other goods and services.
D) produced using scarce economic resources.
4) Which of the following is an example of a factor of production?
A) Land
B) Cell phones
C) Canned soup
D) Television sets
5) Which of the following is NOT an example of a factor of production?
A) Coal
B) Tractors
C) Cigarettes
D) College graduates
6) Which of the following correctly identifies the difference between the demand for factors of production and the demand for final goods?
A) The demand for factors of productions is fixed over time, whereas the demand for final goods changes according to changes in tastes and preferences.
B) The demand for final goods is fixed over time, whereas the demand for factors of production changes according to the changes in tastes and preferences.
C) The demand for final goods is derived from the demand for factors of production, whereas the demand for factors of production is independent of the demand for final goods.
D) The demand for factors of production is derived from the demand for final goods, whereas the demand for final goods is independent of the demand for factors of production.
The following figure shows the production function of a perfectly competitive firm.
7) Refer to the figure above. Which of the following statements is true?
A) The slope of the production function between the points B and C indicates positive returns to labor.
B) The slope of the production function between the points A and B indicates increasing returns to labor.
C) The slope of the production function between the points A and B indicates decreasing returns to labor.
D) The slope of the production function between the points A and C indicates increasing returns to labor.
8) Refer to the figure above. The slope of the production function between ________ and ________ indicates negative returns to labor.
A) point B; point C
B) point A; point C
C) point A; point B
D) the origin; point A
9) The value of marginal product of labor is the:
A) value of the output produced by all the workers in a firm.
B) contribution of an additional unit of labor to a firm’s revenue.
C) extra output that is produced by hiring an additional unit of labor.
D) amount of output produced by the first unit of labor hired by a firm.
10) The value of marginal product of labor is given by:
A) the ratio of the marginal product of labor to the wage rate.
B) the product of the marginal product of labor and the wage rate.
C) the ratio of the marginal product of labor to the price of the final good produced.
D) the product of the marginal product of labor and the price of the final good produced.