In a competitive labor market for bakers, the equilibrium wage rate ________. A. rises if bakers become more productive B. falls if the supply of bakers decreases C. rises if the market price of bakery items falls D. rises if new technology makes it easier for anyone to be a baker

A new coffee shop opens and to maximize profit it hires 5 workers at the competitive wage rate. The price of a cup of coffee is $4 and the value of marginal product of workers in the coffee shop is$12 an hour.

What is the marginal product of the coffee shop workers? How much does a coffee shop worker earn?

A new coffee shop opens and to maximize profit it hires 5 workers at the competitive wage rate. The price of a cup of coffee is $4 and the value of marginal product of workers in the coffee shop is$12 an hour.

If the price of a cup of coffee rises from $4 to$5 and the coffee shop continues to hire workers at the competitive wage rate, explain how the value of marginal product and the number of workers hired will change.

In the prisoners’ dilemma game, each player ________. A. consults the other player to determine his best action B. chooses the best outcome for the other player C. chooses the best outcome for himself D. chooses the best outcome for both players together

In the long run, each firm in monopolistic competition ________. A. makes zero economic profit B. makes as much economic profit as it would if it was a monopoly C. has the same markup and excess capacity as it would if the market was perfectly competitive D. creates the same deadweight loss as it would if it was a monopoly

Which of the following is an example of differentiated products? A. Coke and Pepsi B. automobiles and bicycles C. trucks and gasoline D. stocks and bonds E. gold and silver

Explain how the Bureau of Labor Statistics expects the market for coders to change in the future and draw a graph to show the expected changes.

An individual’s supply of labor curve is ________. A. horizontal at the market wage rate B. upward sloping as the wage rate rises C. upward sloping at low wage rates but becomes downward sloping at high wage rates D. vertical at the standard number of hours a person works per day

If your college switched to online delivery of its courses, what changes do you predict would occur in the factor markets in the town where your college is located

An individual’s supply of labor curve is ________. A. horizontal at the market wage rate B. upward sloping as the wage rate rises C. upward sloping at low wage rates but becomes downward sloping at high wage rates D. vertical at the standard number of hours a person works per day

The value of marginal product of labor increases if ________. A. more labor is hired B. more of the good is produced C. the market price of the good produced rises D. using a new technology reduces the demand for labor

Through the 1990s, the percentage of high school students who decided to go to college increased. Draw a demand-supply graph to illustrate the effect of this increase on the market for college graduates. Explain its effect on the market for college professors.

In the years after World War II, the birth rate increased and the so-called baby boom generation was created. That generation is now beginning to retire. Draw a demand-supply graph to illustrate the effects of this increase in the number of seniors on the market for medical services.

Read Eye on the Coach and then draw demand-supply graphs to illustrate the markets for football coaches and economics professors. Explain the differences in the equilibrium wage rates and the quantities employed.