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Exam 12: The Markets for Labour and Other Factors of Production

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Question 131

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Table 12.1 -Refer to Table 12.1.If the output price is $3, the marginal revenue product of the fifth unit of labour is

A) $1050
B) $360
C) $210
D) $150

E) A) and B)
F) B) and D)

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Question 132

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The present value of $475 received 3 years in the future would be calculated as which of the following when the interest rate is 6 per cent?

A) 475/(1.6) ³
B) 475/(1.06) ³
C) 475 × 1.6 × 3
D) 3) 06/475

E) A) and B)
F) A) and D)

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Question 133

Multiple Choice

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A firm chooses its profit-maximising quantity of capital by

While labour unions tend to negotiate above-equilibrium wage rates for their members, they also tend to reduce the quantity of labour hired.

If Alan Shaw reduces his work hours when his salary increases, then

Explain how the market for opticians is affected as a result of the development of laser technology which reduces the demand for glasses and contact lenses.In your explanation be sure to show the connection between the market for glasses and contact lenses and the market for opticians. __________________________________________________________________________________________________________________________________________________________________________________________

Figure 12.1 Figure 12.1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies. -Refer to Figure 12.1.If the wage rate is $40, Dale should hire

Which of the following factors will not cause the labour demand curve to shift?

Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit.Assume that labour is the only input.If hiring another worker would increase output by three units per hour, then to maximise profits the firm should

If the labour demand curve shifts to the left and the labour supply curve remains unchanged, what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph. __________________________________________________________________________________________________________________________________________________________________________________________