----------------multiple choice---------------------------

16. Which of the following is an example of a factor of production?

a. rent

b. interest

c. land

d. Social Security payments

17. Which of the following is an example of a firms derived demand?

a. The wage that a worker earns is a function of her human capital.

b. A firms demand for college textbook study guide authors is inseparably

linked to the supply of college textbooks.

c. Factors that increase the demand for labor will increase the equilibrium

wage.

d. All of the above are correct.

18. To say that a firm is competitive in the labor market is to say that the firm

a. has little or no control over the number of workers it hires.

b. has little or no control over the wage it pays its workers.

c. is aggressive in pursuing the most skilled workers in the labor market.

d. is aggressive in trying to keep its workers wages low.

19. When a production function exhibits a diminishing, but positive, marginal product of labor,

a. output increases, but at an increasing rate, as more workers are employed.

b. output increases, but at a decreasing rate, as more workers are employed.

c. output declines as more workers are employed.

d. the effects on marginal product are ambiguous.

20. The labor supply curve reflects how

a. workers' decisions about the labor-leisure tradeoff respond to a change in the wage.

b. workers' decisions about the opportunity cost of labor respond to a change in the quantity of labor supplied.

c. firms' decisions about the labor-leisure tradeoff respond to the quantity of labor demanded.

d. firms' decisions about how the quantity of labor they hire respond to changes in their opportunities to earn profits.