An increase in the supply of labour has the effect ofdecreasing theSelect one:O a. wage.b.marginal product of labour.O c. All of the answers are correct.O d. value of the marginal product of labour. Number ofWorkers012345OutputSelect one:O a. $400.O b. $200.O c. $100.d. $500.0100280Marginal Productof Labor806020Value of MarginalProduct of Labor$1,000$800$400Wage$500$500$500$500$500MarginalProfit$500$100Refer to the table above. To maximize its profit, the firm will hire workers as long as the value of the marginal product oflabour equals or exceeds

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An increase in the supply of labour has the effect of decreasing the Select one: a. wage. O b. marginal product of labour. O c. All of the answers are correct. O d. value of the marginal product of labour.

An increase in the supply of labour has the effect of decreasing the Select one: a. wage. O b. marginal product of labour. O c. All of the answers are correct. O d. value of the marginal product of labour.

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

An increase in the supply of labour has the effect of
decreasing the
Select one:
O a. wage.
b.
marginal product of labour.
O c. All of the answers are correct.
O d. value of the marginal product of labour.

Number of
Workers
0
1
2
3
4
5
Output
Select one:
O a. $400.
O b. $200.
O c. $100.
d. $500.
0
100
280
Marginal Product
of Labor
80
60
20
Value of Marginal
Product of Labor
$1,000
$800
$400
Wage
$500
$500
$500
$500
$500
Marginal
Profit
$500
$100
Refer to the table above. To maximize its profit, the firm will hire workers as long as the value of the marginal product of
labour equals or exceeds

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QUESTION 12 The backward-bending supply of labour curve is based on consideration of income and substitution effects. Which of these statements explains why the labour supply curve slopes upwards when wage rates are relatively low? O a. The income effect outweighs the substitution effect O b. The individual feels able to give up consumption in order to enjoy more leisure O c. Wage increases increase the opportunity cost of leisure O d. The income and substitution effects work in the same direction
Consider a factory that produces iPhones. This factory relies on both employees (labor) and machines (capital). Which of the following would decrease the demand forlabor?O a. Public taste shifts away from iPhones towards AndroidsO b. The price of capital falls and labor is easily substituted for capital.O c. The factory has trouble hiring competent workers (workers become less productive).O d. (b) and (a)O e. all of the above
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An increase in the average wage also causes the labor demand curve to shift to the O A. left because the use of machines decreases, causing the average wage to increase. B. right because the use of machines increases, causing labor to become more productive. C. left because the use of machines decreases, causing the marginal cost of labor to increase. O D. left because the use of machines decreases, causing labor to become less productive. O E. right because the use of machines decreases, causing the marginal product of labor to increase.
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Which of the following events would cause a rightward shift in the demand for labour? O A. A decrease in the wage rate. O B. A decrease in the price of capital which causes the substitution effect to outweigh the scale effect for labour. O C. None of the listed options O D. A decrease in the demand for a product.
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38) In the short run, the marginal product of labor might increase initially as more workers are hired because A) the first workers hired get to use the best equipment. B) specialization allows a worker to focus on one task, thereby increasing her proficiency at that task. c the best workers are hired first and later hires are not as skillful. Dj beyond some point, a firm has hired too many workers.
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