1. A leftward shift in the labor supply curve would result if:

A) people value leisure less highly.
B) people have more nonlabor income.
C) transit costs to and from work decline.
D) the population increases.

2. In perfect competition:

A) the supply curve of labor to the firm is a horizontal line.
B) MFC_L is greater than the price of labor.
C) MFC_L is less than the price of labor.
D) MRP_L equals the price of the good.

3. The marginal factor cost in a perfectly competitive market:

A) is equal to the market price of the factor.
B) is less than the market price of the factor.
C) is greater than the market price of the factor.
D) increases with the quantity of input demanded.

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A change in demand for a given factor of production will not occurif:
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Question 3

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Question 4

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Question 5

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A. MFCL is greater than the price of labor.
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Question 6

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A. has shifted the supply curve of labor to the right.
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Question 7

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A. the downward-sloping portion of its marginal revenue productcurve.
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Question 8

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Question 9

Which of the following statements is true?
Answer
A. If the MFCL = MRPL the firm should hire more labor.
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Question 10

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A. people have less nonlabor income.
B. transit costs to and from work decline.
C. the population increases.
D. people value leisure more highly.

Question 11

A firm is in equilibrium when the marginal factor cost is:
Answer
A. equal to the marginal revenue product.
B. less than the price of the factor.
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Question 12

A leftward shift in the labor supply curve would result if:
Answer
A. transit costs to and from work increase.
B. people value leisure less highly.
C. the population increases.
D. people have less nonlabor income.

Question 13

(Exhibit: Wage Determination in Perfect Competition) Which of thefollowing statements is true?
Answer
A. The firm will hire L1 units of labor, as shown in Panel(a).
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Question 14

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A. 6
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Question 15

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Question 16

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Question 17

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Question 18

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Question 19

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Answer
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Question 20

Which of the following statements is true?
Answer
A. MFC = change in total cost/ change in the quantity of afactor.
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