If the price of a factor of production decreases, ceteris paribus, the suppliers of that factor will respond by

changing the quality

increasing the quantity available

increasing the productivity

decreasing the productivity

decreasing the quantity available

The quantity of labor demanded is ________ related to the wage rate, while the quantity of labor supplied is ________ related to the wage rate, ceteris paribus.

positively; positively

negatively; positively

positively; negatively

negatively; negatively

negatively; not

The number of units of output that an acre of land will produce increases, ceteris paribus. What will this do to the demand for this land?

Demand will increase.

Demand will decrease.

There will be no change in demand.

Demand will not change, but quantity demanded will decrease.

Demand will not change, but quantity demanded will increase.

If the demand for a good decreases significantly, then

only the quantity demanded of labor for the good decreases

the demand for the labor used to make the good increases

the demand for the labor used to make the good decreases

the quantity of labor supplied to produce the good will decrease

the supply of labor to produce the good will increase

Advanced robotics become a much stronger substitute production factor than labor to produce Good A. At the same time, the government increases licensing requirements to be a laborer producing Good A. What would happen to the market equilibrium quantity of labor and wage rate for specialized labor to produce A?

The quantity of labor increases, and the wage rate increases.

The quantity of labor decreases, and the wage rate increases.

The effect on the quantity of labor is indeterminate, and the wage rate decreases.

The quantity of labor decreases, and the effect on the wage rate is indeterminate.

The quantity of labor and the wage rate both remain constant.

If the wage in a perfectly competitive labor market is $20 and the marginal product of the last worker employed is 10 units, what must be the market price for the good being produced? Assume a perfectly competitive output market.

$2

$10

$22

$30

$200

A firm in a perfectly competitive labor market is employing labor where the marginal revenue product of the last unit is $25 and the marginal factor cost is $30. Based on this, the firm should

employ more units of labor

employ fewer units of labor

employ the same amount of labor

lower its offered wage for labor

increase its offered wage for labor

Which of the following is correct about a monopsonistic market?

Resources are efficiently allocated.

There is one seller and many buyers.

The monopsony has a lower quantity transacted as in a perfectly competitive market, ceteris paribus.

The supply curve is horizontal and is equal to the average cost of labor.

Purchase of an additional unit decreases the price of that unit and of the existing units being purchased.

The purchase of an additional unit increases the price of the unit and of the existing units being purchased. This describes

perfect competition

monopolistic competition

an oligopoly

a monopoly

a monopsony

In a monopsonistic market, firms will hire where ________ equals marginal revenue product and pay a ________ down to the supply curve.

demand; wage rate

demand; product price

marginal resource cost; wage rate

marginal resource cost; product price

marginal factor cost; product price