The table gives information about the labor market in Lantis, an isolated community where the market for workers is perfectly competitive. The equilibrium wage rate is ____________ an hour and the quantity of labor employed is _____________.

$15; 400 hours
$17.50; 350 hours
$15; 300 hours
$20; 300 hours

The table gives information about the labor market in Lantis, a community in which the labor market is perfectly competitive. If the demand for labor decreases by 100 hours, the equilibrium wage rate ___________ an hour and the quantity of labor employed ______________.

falls to $15; decreases to 300 hours
falls to $12.50; remains at 350 hours
remains at $17.50; remains at 350 hours
rises to $20; increases to 400 hours

The figure illustrates the market for car-wash workers. If the car-wash market is competitive and the price of a car wash is $3, the marginal product of the last worker hired is ________________. The reservation wage rate is $2 an hour. Car-wash workers earn __________ economic rent and ___________ opportunity cost.

2 washes an hour; $8; $16
$6 an hour; $0; $24
dependent on the number of cars washed; $24; $0
6 washes an hour; $16; $8

Daniel owns the Donut Deli. The table shows the hourly total product of Donut Deli. The market price of a dozen donuts is $2. When Daniel increases the number of employees from 2 to 3, marginal revenue product of labor ____________.

increases to $30 an hour
does not change
decreases to $10 an hour
increases to $20 an hour

Daniel owns the Donut Deli. The table gives Donut Deli's total product schedule. Donuts sell for $2 a dozen. If the labor market is competitive and the market wage rate is $10 an hour, Daniel hires ________________.

an average of 4.5 workers an hour
3 workers an hour
4 workers an hour
as many workers as possible

The table gives information about the labor market in Lantis, a community in which the labor market is perfectly competitive. If the price of the good increases and increases the marginal revenue product of labor by $5 an hour, the equilibrium wage rate ___________ an hour and the quantity of labor employed ______________.

rises to $20; increases to 400 hours
falls to $12.50; remains at 350 hours
remains at $17.50; remains at 350 hours
falls to $15; decreases to 300 hours

The table shows the number of designer wine corks that can be produced by Corks-By-Us as the number of workers hired increases. The cork market is perfectly competitive and each cork sells for $3. The labor market is competitive and the wage rate is $21 an hour. When Corks-By-Us maximizes its profit, it produces _______ corks an hour.

18
24
10
2

Betty's Bakery is considering the purchase of one, two, or three additional electric mixers. An electric mixer has a life of 2 years and costs $200. The table gives the marginal revenue product of a mixer. If the interest rate is 10 percent a year, the net present value of the third mixer is ________________.

-$25.61
-$12.40
$12.40
$25.61

Betty's Bakery is considering the purchase of one, two, or three additional electric mixers. An electric mixer has a life of 2 years and costs $200. The table gives the marginal revenue product of a mixer. If the interest rate is 10 percent a year, Betty's buys ___________.

1 mixer
impossible to know without more information
3 mixers
2 mixers

If no new technology of extracting resources becomes available, you would predict that the price of an exhaustible natural resource would _______ and if better technology of extracting resources becomes available, you would predict that the price of an exhaustible natural resource would _______.

rise at a rate equal to the interest rate; fall
fall; rise at a rate equal to the inflation rate
rise at a rate equal to the inflation rate; fall
fall; rise at a rate equal to the interest rate

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