Question 1

In economics,the term capital refers to

Accepted Answer

Capital in economics refers to equipment and structures used in production, such as machinery, buildings, resources, and technology. Money and stocks/bonds can be used to invest in or finance capital, but they are not considered capital themselves.

Question 2

When firms are able to increase the amount of physical capital available to workers,the

Accepted Answer

When firms increase the amount of physical capital available to workers, it leads to an increase in productivity and efficiency, resulting in an increase in the value of the marginal product of labor. This means that each additional unit of labor produces more output and is therefore more valuable to the firm.

Question 3

Suppose that technological progress increases the productivity of teachers.Which of the following accurately describes the labor market for teachers after the technological change? Equilibrium wages will

Accepted Answer

The increase in productivity of teachers will increase the demand for teachers, which will lead to an increase in equilibrium wage and an increase in equilibrium quantity of teachers employed. Therefore, option B is the correct choice.

Question 4

Consider the labor market for computer programmers.Because of the dot.com boom in the late 1990s,a lot of workers went to school to learn how to write computer code for one of thousands of new dot.com companies.However,when these computer programming students graduated,the dot.com bust took place.The dot.com bust decreased the value of the marginal product of computer programmers.Holding all else equal,what effect did these two circumstances have on the equilibrium wage in the labor market for computer programmers?

Accepted Answer

The dot.com bust decreased the value of the marginal product of computer programmers, which means the demand for programmers decreased relative to the supply. This leads to a decrease in the equilibrium wage in the labor market for computer programmers.

Question 5

The distribution of immigrant workers in the United States is

Accepted Answer

According to research, immigrant workers are more likely to be concentrated in low-skilled jobs (such as agriculture, domestic work, and food service) and high-skilled jobs (such as science, engineering, and medicine) than in medium-skilled jobs (such as manufacturing and construction). Therefore, option D is the best choice as it states that immigrant workers are more concentrated in low- and high-skilled jobs than in medium-skilled jobs.

Question 6

Consider the labor market for computer programmers.Because of the dot.com boom in the late 1990s,a lot of workers went to school to learn how to write computer code for one of thousands of new dot.com companies.However,when these computer programming students graduated the dot.com bust took place.The dot.com bust decreased the value of the marginal product of computer programmers.Holding all else equal what effect did these two circumstances have on the equilibrium quantity in the labor market for computer programmers?

Accepted Answer

The answer of Consider the labor market for computer programmers.Because...

Question 7

Consider the labor market for short-order cooks.A labor-augmenting technological change such as a faster food processor will cause

Accepted Answer

The answer of Consider the labor market for short-order cooks.A...

Question 8

Which of the following is not correct?

Accepted Answer

Low-skilled immigration may have a negative impact on the wages of low-skilled native-born workers, but the impact on overall earnings and GDP growth is still debated among economists. Some studies have shown that low-skilled immigrants can also contribute to the economy by filling important labor gaps and boosting demand for goods and services. Therefore, the statement that low-skilled immigration always lowers the earnings of native-born workers by 10-20 percent is not necessarily correct.

Question 9

A significant slowdown in the growth of productivity persisted in the U.S.economy between

Accepted Answer

This time period saw a significant slowdown in productivity growth, known as the "productivity paradox." Despite advancements in technology, productivity gains were not being realized in the economy as a whole. This trend was eventually reversed in the late 1990s and early 2000s with the widespread adoption of technology and increased investment in innovation.

Question 10

Consider the labor market for computer programmers.During the late 1990s,the value of the marginal product of all computer programmers increased dramatically.Holding all else equal,the equilibrium wage in the labor market for computer programmers

Accepted Answer

If the value of the marginal product of all computer programmers increased dramatically, it means that their contribution to the production process became more valuable. As a result, employers would be willing to pay more for their services, and the equilibrium wage in the labor market for computer programmers would increase.

Question 11

Consider the labor market for heath care workers.Because of the aging population in the United States,the output price for health care services has increased.Holding all else equal,in the labor market for health care employees the equilibrium wage

Accepted Answer

Due to the aging population, the demand for health care services increases, which leads to an increase in the output price of those services. This increase in the output price raises the revenue generated from providing health care services, which leads health care providers to increase their demand for health care labor. As the demand for labor increases, the equilibrium wage rate and the equilibrium quantity of labor both increase. Therefore, choice A is the correct answer.

Question 12

Consider the labor market for heath care workers.Because of the aging population in the United States,the output price for health care services has increased.Holding all else equal,the equilibrium wage of health care employees would

Accepted Answer

The aging population in the United States has increased the demand for health care services, resulting in an increase in the output price of health care services. As a result, the demand for health care workers will increase, causing the equilibrium wage of health care employees to increase. This is because employers will need to increase wages to attract and retain workers in the industry. Therefore, the equilibrium wage of health care employees will increase.

Question 13

Consider the labor market for computer programmers.During the late 1990s,the value of the marginal product of all computer programmers increased dramatically.Holding all else equal,what effect did this process have on the labor market for computer programmers? The equilibrium wage

Accepted Answer

An increase in the value of the marginal product of computer programmers means that the demand for their services increased. This would lead to an increase in the equilibrium wage and an increase in the quantity of labor, as firms would be willing to hire more programmers at the higher wage rate.

Question 14

An increase in the value of the marginal product of labor has the effect of increasing the

Accepted Answer

An increase in the value of the marginal product of labor means that each additional unit of labor being employed is generating more output, and therefore, is more valuable to the firm. This leads to an increase in the demand for labor, as firms want to hire more workers to take advantage of the higher productivity. As the demand for labor increases, so does the wage rate, as firms must offer higher wages to attract workers. Finally, the quantity of labor employed also increases, as firms hire more workers to take advantage of the higher productivity and higher wages. Therefore, all of the above choices are correct.

Question 15

Consider the labor market for heath care workers.Because of the aging population in the United States,the output price for health care services has increased.Holding all else equal,the equilibrium quantity of health care employees would

Accepted Answer

An increase in output price for health care services signals an increase in demand for these services, which would lead to an increase in employment within the health care sector. Therefore, the equilibrium quantity of health care employees would increase.

Question 16

Consider the labor market for computer programmers.During the late 1990s,the value of the marginal product of all computer programmers increased dramatically.Holding all else equal,the equilibrium quantity in the labor market for computer programmers

Accepted Answer

If the value of the marginal product of all computer programmers increased dramatically, this means that the demand for computer programmers increased as well. This increase in demand would lead to an increase in both the equilibrium wage and quantity in the labor market for computer programmers. Therefore, choice A is the best answer.

Question 17

Consider the labor market for short-order cooks.A shortage in the availability of frying pans will cause

Accepted Answer

The answer of Consider the labor market for short-order cooks.A...

Question 18

Both theory and history point to a close relationship between increases in

Accepted Answer

Both economic theory and historical evidence suggest that an increase in the productivity of labor will lead to an increase in real wages. This is due to the fact that when the productivity of labor increases, firms can produce more output with the same amount of labor. This, in turn, increases the demand for labor and puts upward pressure on wages. As a result, real wages (adjusted for inflation) tend to rise when labor productivity increases.

Question 19

Which of the following statements is correct?

Accepted Answer

Both economic theory and evidence from the U.S. economy suggest that there is a close link between productivity and real wages. Economic theory suggests that as productivity increases, firms can afford to pay higher wages to their workers. Evidence from the U.S. economy shows that in industries and occupations where productivity has increased the most, real wages have also grown the most. Therefore, the correct statement is that there is a close link between productivity and real wages, as suggested by economic theory and supported by evidence from the U.S. economy.

Question 20

Suppose medical research provides evidence that eating bananas provides far greater health benefits than was previously thought.The resulting increase in the demand for bananas

Accepted Answer

An increase in demand for bananas would lead to an increase in the value of the marginal product of banana pickers, which is the additional revenue generated by hiring one more banana picker. The marginal product of banana pickers is the additional bananas produced by hiring one more banana picker. It is possible that the marginal product could also increase due to higher demand, but it is not guaranteed. Additionally, the increase in demand for bananas would not necessarily lead to an increase in the supply of banana pickers, as the number of people willing and able to pick bananas may remain constant.

Quiz 18: The Market for the Factors of Production

In economics,the term capital refers to

When firms are able to increase the amount of physical capital available to workers,the

Suppose that technological progress increases the productivity of teachers.Which of the following accurately describes the labor market for teachers after the technological change? Equilibrium wages will

The distribution of immigrant workers in the United States is

Consider the labor market for short-order cooks.A labor-augmenting technological change such as a faster food processor will cause

Which of the following is not correct?

A significant slowdown in the growth of productivity persisted in the U.S.economy between

Consider the labor market for computer programmers.During the late 1990s,the value of the marginal product of all computer programmers increased dramatically.Holding all else equal,the equilibrium wage in the labor market for computer programmers

Consider the labor market for heath care workers.Because of the aging population in the United States,the output price for health care services has increased.Holding all else equal,in the labor market for health care employees the equilibrium wage

Consider the labor market for heath care workers.Because of the aging population in the United States,the output price for health care services has increased.Holding all else equal,the equilibrium wage of health care employees would

Consider the labor market for computer programmers.During the late 1990s,the value of the marginal product of all computer programmers increased dramatically.Holding all else equal,what effect did this process have on the labor market for computer programmers? The equilibrium wage

An increase in the value of the marginal product of labor has the effect of increasing the

Consider the labor market for heath care workers.Because of the aging population in the United States,the output price for health care services has increased.Holding all else equal,the equilibrium quantity of health care employees would

Consider the labor market for computer programmers.During the late 1990s,the value of the marginal product of all computer programmers increased dramatically.Holding all else equal,the equilibrium quantity in the labor market for computer programmers

Consider the labor market for short-order cooks.A shortage in the availability of frying pans will cause

Both theory and history point to a close relationship between increases in

Which of the following statements is correct?

Suppose medical research provides evidence that eating bananas provides far greater health benefits than was previously thought.The resulting increase in the demand for bananas