Multiple choice
View Go Tools Window Help Microeconomics Final.pdf of 12 Q Q Search 23) Referring to the graph above, which one of the following statements is false? a) The graph illustrates a possible labor supply curve for an individual. 28) What value should take the place of (A)? b) The quantity of labor supplied is maximized at a wage of Wo. c) The graph illustrates a possible labor supply curve for an entire market. 15 d) Below a wage of Wo, the substitution effect dominates the income effect. 20 e) Above a wage of Wo, the income effect dominates the substitution effect. C) 50 1) 280 24) Referring to the individual labor supply graph above, at a wage below Wo ... e) you can't tell from this information a) lowering the wage rate will increase the individual's quantity of labor supplied. 29) If the shirt producer can sell shirts on a perfectly competitive product market for $4 b) the substitution effect dominates. each, how much additional revenue does it gain by hiring the 4th worker? - c) the income effect dominates. a) $20 d) the curve demonstrates evidence of income targeting. e) the wage rate has no effect on the individual's quantity of labor supplied. b) $60 6) $7 1) $80 25) In the neoclassical labor model, the amount that an additional worker hired adds to the $280 revenues of the firm is called the_ of labor. a) marginal physical product b) maximum revenue price 30) If the shirt producer can sell shirts on a perfectly competitive product market for $4 each and can hire workers on a perfectly competitive labor market at a wage of $15, c) marginal factor cost what level of output should it produce? d) marginal revenue product e) marginal fractional cost a) 0 shirts b) 3 shirts 26) In the neoclassical labor model, the amount that it costs to hire an additional worker is 0) 4 shirts called the of labor. d) 5 shirts e) more than 5 shirts a) marginal physical product b) maximum revenue price Use the information provided below to answer Questions 31-34. c) marginal factor cost Rosa loves buying shoes and going out to dance. Her utility function for pairs of shoes, S, and d) marginal revenue product the number of times she goes dancing per month, T, is U(S,T) - 3ST, her marginal utility from e) marginal fractional cost shoes is MUs = 3T, and her marginal utility from dancing is MUr-38. She has $750 to spend on shoes and dancing. The prices are as the following: T - $25, 8-$75. 27) In the neoclassi model of the labor market, firms hire labor until ... 31) What is the equation for her budget line if T - the number of times she goes dancing per a) the marginal revenue product equals the marginal factor cost. month -- is on the vertical axis? b) the total revenue product equals the total factor cost. c) the marginal physical product equals the marginal revenue product. a T - 10-38 d) the marginal physical product equals the marginal factor cost. b) T = 20- 38 e) the total physical product equals the total revenue product. C) T = 30 - 38 d) T -40 -18 Use the following table, which shows how many shirts can be produced in an hour as the 8) T - 40-28 number of workers varies (all other inputs constant) to answer Questions 28-30. The 32) What is the slope of her budget line? blank columns are provided to you as a work area, Number Number f Shirts Marginal Physical Product of Workers Produced Labor d ) 3 70 B 85
