Economics

Markets for Factors

Dept. of Economics @ NCKU

Weng, Ming-Hung
 Q1
If the price of output
Total
Labor MPL is $5 and the wage
Product rate is $48, how
1 15 15 many workers
2 27 12 should the firm hire?
1. 1
3 37 10
2. 2
4 45 8 3. 3
5 52 7 4. 4
6 56 4 5. 5
6. 6
 Q2
The lower the wage
Total
Labor MPL rate is, the ____
Product labors will the firm
1 15 15 hire.
2 27 12 1. more
3 37 10 2. fewer
4 45 8 3. same amount of
5 52 7
6 56 4
 Q3
How will labor demand respond to
1. Increase (shift up/right)
2. Decrease (shift down/left)
3. Move up along the demand
4. Remain the same
= ()

 Q4
LOHAS
(Lifestyles Of Health An

d Sustainability) will

cause a __ wage rate

and ___ working days
1. higher; more
2. higher; fewer
3. lower; more
4. lower; fewer


Q5
Salary of which
occupation is likely
reflecting a
compensating
wages
1. Fast-food cook
2. Firefighter
3. Financial analyst
4. Economist