ID: A Name: 14. Motivated by lower import prices, United States manufacturers increase their imports of steel from other steel-producing countries. Which of the following best describes the impact of the increased steel imports on the labor market for steelworkers in the United States? a. Jobs in the United States steel industry d. The supply of steelworkers will decrease, will become less attractive, so wages will increasing the steelworker wage in the have to increase in this market to attract United States. more workers to the United States steel industry. b. Domestic steel prices will fall, leading to e. The demand for United States an increase in sales of domestically steelworkers will decline, putting produced steel, which increases demand dowward pressue on steelworker wages. and employment of steel workers. C. The supply of steelworkers will increase, lowering the steelworker wage in the United States. 15. A firm produces truffles by using labor and capital. The price of labor is $10 per unit, and the price of capital is $20 per unit. At current output level, the marginal product of labor is 40 truffles and the marginal product of capital is 60 truffles. To reduce the total cost of producing the current quantity of truffles, how should the firm change it's spending on labor and capital? a. Labor: No change d. Labor: Increase Capital: Increase Capital: No change b. Labor: Decrease e. Labor: Increase Capital: No change Capital: Decrease C . Labor: Decrease Capital: Increase 16. A perfectly competitive firm is currently producing at the profit-maximizing output level. If the marginal physical product of labor is 10 units per hour and the firm pays a wage rate of $8 per hour, which of the following is true? a. The marginal revenue product of labor is d. The output price is $0.80 per unit. $80 b. The marginal cost is $1.25. e. The output price is $1.25 per unit. . The average total cost is $0.80 per unit. 17. A firm's demand for labor is known as a derived demand because a. the firm gains utility from hiring more d. the amount of labor demanded depends labor on the demand for the firm's product b. the wage rate paid to workers depends on e. the firm will benefit from hiring the demand for labor additional labor C. the amount of labor demanded depends on the amount of capital invested