If labor productivity increases,
Question 8 options:

the demand for labor increases.

labor costs rise by equal increments.

jobs will relocate.

some workers will be laid off.
In labor markets, the substitution effect occurs when
Question 10 options:

a change in the price of a substitute input reduces the cost of capital.

a change in the price of a substitute input causes the demand for labor to change in the same direction.

a substitute good also functions as a compliment.

the cost of production falls enough that the firm will produce a larger amount of output.
The demand for labor is
Question 6 options:

derived from the satisfaction that hiring the inputs provides the owner or manager of the firm more money.

totally unrelated to the demand curve for the final product.

derived from the demand for the final product being produced.

derived from a utility-maximizing process similar to that used to derive the demand curve for goods and services.

Question

If labor productivity increases,
Question 8 options:



 

the demand for labor increases.



 

labor costs rise by equal increments.



 

jobs will relocate.



 

some workers will be laid off.
In labor markets, the substitution effect occurs when
Question 10 options:



 

a change in the price of a substitute input reduces the cost of capital.



 

a change in the price of a substitute input causes the demand for labor to change in the same direction.



 

a substitute good also functions as a compliment.



 

the cost of production falls enough that the firm will produce a larger amount of output.
The demand for labor is
Question 6 options:



 

derived from the satisfaction that hiring the inputs provides the owner or manager of the firm more money.



 

totally unrelated to the demand curve for the final product.



 

derived from the demand for the final product being produced.



 

derived from a utility-maximizing process similar to that used to derive the demand curve for goods and services.

	MP = P.
	MFC = P.
	MFC = MRP.
	MP = MRP.

	MFC/MPP_L = wage.
	MFC/MRP_L = 1.
	MFC = MPP_L.
	MRP_L/P = MFC.

	pays input prices lower than other firms do.
	cuts corners in production processes so that its products are made too cheaply.
	is inefficient.
	uses the least-cost combination of resources.

	firms value less efficient workers less than they value more efficient workers.
	firms must lower prices to sell the additional units of its product that the extra workers produce.
	of profit maximizing behavior.
	of the law of diminishing marginal product.

	get rid of some capital.
	reduce the number of workers.
	lower wages.
	hire more workers.

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	A decrease in labor productivity.
	A decrease in the price of automobiles.
	A decrease in the price of robots that are used to solder parts of the car together.
	An increase in the demand for automobiles.

	the additions to total cost when an additional unit of a variable input is hired.
	the additional revenue obtained when an additional unit of a variable input is hired.
	the change in total product for an additional unit of a variable input.
	the amount that other inputs must increase by when labor increase by one unit.

	marginal physical product curve.
	marginal revenue product curve.
	marginal revenue curve.
	marginal factor cost.

	the firm's demand for labor increases.
	the firm's demand for labor decreases.
	the wage rate the firm pays will increase.
	the firm's marginal factor cost will increase.

	A change in the supply of labor.
	A change in demand for the final good.
	A change in the price of a substitute input.
	A change in labor productivity.