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

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

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

remains at £17.50; remains at 350 hours
rises to £20; increases to 400 hours
falls to £15; decreases to 300 hours
falls to £12.50; remains at 350 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 ___________ transfer earnings.

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

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 labour ____________.

does not change
increases to £30 an hour
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 labour market is competitive and the market wage rate is £10 an hour, Daniel hires ________________.

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

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

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