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Microeconomics Unit 7 Review Flashcards | StudBud
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Microeconomics Unit 7 Review
Microeconomics Unit 7 Review
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1
Wage and marginal resource cost are one and the same if
We're hiring in a monopsonistic labor market.
we're hiring in a perfectly competitive labor market.
MB is greater than or equal to MC.
There are no unions in the labor market.
2
What type of labor market does this employer face?
monopoly
perfectly competitive
oligarchical
monopsony
3
MRP of the last unit of labor is $100 and of capital is $50; labor costs $30, capital costs $15
Hire more capital and less labor.
Hire more labor and less capital.
Cannot be determined with the information provided.
Make no changes.
4
How many workers will this profit-maximizing firm hire?
G
H
F
E
5
Which of the following incorrectly pairs a job and its category of labor?
doctor:professional
plumber:unskilled
receptionist:white collar
nurse: professional
6
If the price of plastic, a substitute factor of production for glass, goes up then
the demand for glass will go up.
The demand for plastic will go up.
The demand for plastic will go down.
the demand for glass will go down.
7
If jars are sold for $5 and workers are paid $20 per hour, how many workers should be hired?
4
2
5
3
8
If a new minimum wage of A was put in place, what would be the effect on the quantity hired?
It would decrease.
All of the above?
It would increase.
It would not change.
9
Given the graph, what would be the effect of a union negotiated wage of W2?
An increase in wage and employment.
An increase in wage and a drop in employment.
A drop in wage and an increase in employment.
A decrease in wage and employment.
10
Diminishing marginal returns kick in with the hiring of which unit of input?
2
1
3
4
11
The elasticity of demand for factor of production A will be lowest when:
the elasticity of demand for the final good is lowest.
the elasticity of demand for a substitute factor is highest.
the elasticity of demand for a substitute factor is lowest.
the elasticity of demand for the final good is highest.
12
Which is generally NOT considered to be a negative effect that unions may have in an economy?
increased difficulty competing w/ foreign producers in price
increased unemployment
reduced skill in the workforce
higher prices
13
Which of the following would not necessarily shift the demand for a factor of production?
Increase in price for a substitute factor of production
The factor becomes more productive
A change in the supply of the factor
Increase in demand for the final product
14
Minnesota's minimum wage is _____________ per hour for large employers.
$7.25
$8.00
$9.50
$5.50
15
Which term refers to the practice of paying above market price for labor to retain workers?
open shop
collective bargaining
equilibrium
efficiency wage
16
For a firm selling in a perfectly competitive product market, MRP=
change in price / change in MP
price x MP
price / mp
change in price / change in quantity of the factor
17
Toproduce 30 total, if Factor A costs $1 and B costs $2, how much each should weuse?
2 each of A and B
5 of B (none of A)
3 of A and 1 of B
1 of A and 3 of B
18
What wage will this profit-maximizing monopsony pay for its labor?
W2
W1
W3
19
The implicit cost of capital that you own is:
The original cost of the capital.
Its rent, an opportunity cost.
The original cost of the capital divided by its age.
Nothing. I already own it.
20
Which is not one of the four factors of input?
time
entrepreneurship
labor
capital
