FIRM ABC makes a technological breakthrough making the workers more productive

The firm will hire more workers

additional revenue gained from hiring a worker

What is NOT a characteristic of a perfectly competitive labor market?

there are usually around 10 main firms

Why is the demand/MRP curve downward sloping?

because of the law of diminishing marginal returns

What is the supply of labor?

individuals willing to sell their labor at different wages

additional cost to hire one worker

Which of the following will increase the demand of labor for the firm?

Increase of productivity among workers

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AP Micro Unit 5 Review

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What do you all know about the Resource Market?

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Questions 18

Answers

1
FIRM ABC makes a technological breakthrough making the workers more productive
The firm will hire less workers
The firm will hire more workers
The market demands more workers
The market demands less workers
2
What is MRP?
additional cost to hire one worker
marginal resting product
additional cost to fire one worker
additional revenue gained from hiring a worker
3
How does a business know how many workers to employ?
how many the government allows
when MPR = MRC
when MRP = MRC
they can hire as many as they want
4
What is the number of workers this firm should hire?
5
2
3
4
5
What is NOT a characteristic of a perfectly competitive labor market?
there are usually around 10 main firms
wage is constant
workers have identical skills
many small firms hiring workers
6
Which of the following is not a shifter of demand in the labor market?
Change in prices of other resources
Increase in demand for the product that it makes
Number of qualified workers
Technological advances making workers more productive
7
What is the total revenue generated from 3 workers
$140
$640
$210
$500
8
Why is the demand/MRP curve downward sloping?
because of the law of diminishing marginal returns
the businesses decrease wages with every new worker
That's just the way it is
The world may never know
9
How do you calculate MRP?
MP/P
(MP * P) / MRC
MP * P
MRP/MRC
10
What is the supply of labor?
The businesses who are producing a product
The unemployed
individuals willing to sell their labor at different wages
Parents who make their children get jobs
11
Becoming a teacher requires more schooling. What happens to the quantity & wage in the market for teachers, respectively
Increases; Increase
Increase; Decrease
Decrease; Increase
Decrease; Decrease
12
What is the MRC of the 5th worker?
$125
$625
$500
13
Which of the following is the best example of physical capital?
My personal vehicle
Your Chromebook
Human Labor
Oven in a pizza shop
14
Wage = $25, MP of Labor is 100; Price of Capital =$50, MP of Capital is 200. The firm should __________ to minimze costs
Hire Only Lullo Since He Wants to Be an Econ Jedi!
Make No Changes At All
Hire Less Labor and More Capital
Hire More Labors and Less Capital
15
What is MRC?
money gained from hiring a worker
marginal resting cost
additional cost to hire one worker
additional cost to fire one worker
16
What is the MRP of the 2nd worker?
$360
$200
Unknown
$560
17
What happens to the number of workers a firm hires if the price of the product increases?
No Change
Indeterminate
Decrease
Increase
18
Which of the following will increase the demand of labor for the firm?
change in MRC
Decrease in price of product
more people are born into the world
Increase of productivity among workers

AP Micro Unit 5 Review Flashcards | StudBud