Suppliers of factors of production in a perfectly competitive market respond to higher factor prices by ________ of their factors, ceteris paribus. (3 points)

changing the quality

increasing the productivity

decreasing the productivity

increasing the quantity available

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. (3 points)

positively; positively

negatively; positively

positively; negatively

negatively; negatively

negatively; not

Assume that the demand for bicycles increases significantly at the same time that there is an increase in the number of people qualified to make bicycles. What would happen to the market equilibrium quantity of labor and wage rate for the labor to produce bicycles? (3 points)

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

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 increases, and the effect on the wage rate is indeterminate.

Which of the following is correct about a monopsonistic market? (3 points)

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.

There is one buyer for an indeterminate number of sellers. This describes (3 points)

perfect competition

monopolistic competition

an oligopoly

a monopoly

a monopsony