Try out our new practice tests completely free!

# Microeconomics Study Set 46

## Quiz 13 :Factor Markets

(Figure: Budget Constraint I) If Aleksandra was getting paid $20 per hour, then received a raise of$10 per hour, which graph would best illustrate her new budget constraint?
Free
Multiple Choice

B

Tags
Choose question tag
Table (Baristas Labor I). Suppose that the wage rate for baristas is $9 per hour and the average price of cappuccino is$4.45. Suppose the productivity of workers increases by 10% compared to the output shown in the table. The profit-maximizing quantity of labor would now be ____.
Free
Multiple Choice

D

Tags
Choose question tag
A union faces a labor demand curve given by MRPL = 100 - 5L. If the union wishes to maximize the total wages of its membership, members will earn an average wage of $____. Free Multiple Choice Answer: Answer: C Tags Choose question tag A monopsony has a marginal revenue product curve of MRPL = 100 - l and faces a labor supply curve of W = 1.5l. How many workers will the monopsony hire? Multiple Choice Answer: Tags Choose question tag A pizza shop's marginal product of labor, measured as the number of pizzas delivered per week, is MPL = 55 - 5L, where L is the number of workers. The average price of a pizza in this highly competitive market is$10. The shop can hire workers at the market wage of $300 per week. The marginal product of labor for the fourth worker is ____. Multiple Choice Answer: Tags Choose question tag Suppose the demand faced by a labor monopsony is W = 20,000 - 50l, where W is the annual wage and l is the number of workers hired. The labor supply is given by W = 5,000 + 75l. The monopsony will pay a wage equal to: Multiple Choice Answer: Tags Choose question tag (Figure: Labor Union Wages I) The figure represents a labor union with wage in dollars and quantity of labor in hundreds of hours. If the labor union chooses to maximize profit, how many workers will it supply? Multiple Choice Answer: Tags Choose question tag (Figure: Marginal Productivity of Apple Pickers I) Assume that the marginal productivity of apple pickers has increased. Which graph best illustrates this change? Multiple Choice Answer: Tags Choose question tag A pizza shop's marginal product of labor, measured as the number of pizzas delivered per week, is MPL = 55 - 5L, where L is the number of workers. The average price of a pizza in this highly competitive market is$10. The shop can hire workers at the market wage of $300 per week. There is a diminishing marginal product of labor when worker number ____ is hired. Multiple Choice Answer: Tags Choose question tag Which of the following statement(s) is (are) true? I. A labor union can choose to maximize profit, maximize total wages of its members, or accept the competitive wage. II. The number of workers employed when a union is present is generally greater than the number employed in a perfectly competitive labor market. III. The wage rate paid to union workers typically exceeds that of workers in a competitive market. Multiple Choice Answer: Tags Choose question tag (Figure: Budget Constraints and Indifference Curves I) The figure shows budget constraints and indifference curves for a representative individual. Identify the substitution effect of the increase in the wage rate in the associated graph. Multiple Choice Answer: Tags Choose question tag A monopsony has a marginal revenue product curve of MRPL = 100 - l and faces a labor supply curve of W = 1.5l. How many workers will the price taker hire? Multiple Choice Answer: Tags Choose question tag (Figure: Budget Constraints and Indifference Curves I) The figure shows budget constraints and indifference curves for a representative individual. Identify the income effect of the increase in the wage rate in the associated graph. Multiple Choice Answer: Tags Choose question tag Which of the following is NOT a goal of a labor union? Multiple Choice Answer: Tags Choose question tag (Figure: Budget Constraint I) If Jude gets paid$20 per hour, which graph best illustrates their budget constraint?
Multiple Choice
Tags
Choose question tag
Assume that the labor market is in equilibrium. An increase in the availability of public transportation would shift labor __________ the equilibrium wage and _____ the amount of labor employed.
Multiple Choice
Tags
Choose question tag
Table (Baristas Labor I). Suppose that the wage rate for baristas is $9 per hour and the average price of cappuccino is$3. The profit-maximizing quantity of labor is ____.
Multiple Choice
Tags
Choose question tag
A pizza shop's marginal product of labor, measured as the number of pizzas delivered per week, is MPL = 55 - 5L, where L is the number of workers. The average price of a pizza in this highly competitive market is $10. The shop can hire workers at the market wage of$300 per week. The marginal product of labor for the second worker is ____.
Multiple Choice