Unit 5 check

Unit 5 check: Factor Markets

10 questions from 4 lessons in Unit 5. Answer each one, and if you miss, follow the link back to where it is taught, then try again. Your score counts first tries.

Question 1 · from 5.1 · Fill the statement

A farm grows corn. Tap a blank, then tap a word.

The farm pays a landowner for the use of a field and pays its workers . In these factor markets the farm is the .

Question 2 · from 5.2 · Sort it

Each card is a change in a city's market for bakers. Tap a card, then tap the curve it shifts.

Labor demand

Labor supply

Question 3 · from 5.3 · Decide and justify

A print shop pays workers $20 an hour and rents printers for $50 an hour. The last worker hour adds 100 pages, and the last printer hour adds 300 pages. To print the same number of pages at a lower cost, what should the shop do?

Which reason supports your choice?

Setup for question 4

Ridgeline Mill is the only employer in a remote town, and it pays all its workers the same wage. The table shows the wage it must pay to hire each number of workers, and each worker's marginal revenue product.

Ridgeline Mill, wages and MRP by number of workers
WorkersWage needed per hourMRP of that worker per hour
1$30$110
2$35$95
3$40$80
4$45$65
5$50$56
6$55$40

Question 4 · from 5.4 · Calculate

What is the marginal factor cost of the fifth worker, in dollars per hour?

dollars per hour

Question 5 · from 5.1 · Calculate

A car wash charges $9 a wash, a price it cannot change. With 2 workers it washes 30 cars a day; with 3 workers, 38 cars a day. What is the marginal revenue product of the third worker, in dollars a day?

dollars a day

Question 6 · from 5.2 · Fill the statement

Many people move into a region looking for work on farms. Tap a blank, then tap a word or phrase.

In the region's market for farmworkers, labor supply shifts , the equilibrium wage , and the quantity of farm labor employed .

Setup for question 7

Tiller Robotics is the only seller of a patented robot mower, so to sell more mowers a day it must lower its price. It hires assemblers in a perfectly competitive labor market at the market wage of $150 a day.

Tiller Robotics, by number of assemblers
AssemblersMowers a dayPrice per mowerTotal revenue a day
110$50$500
218$48$864
324$46$1,104
428$44$1,232
530$42$1,260

Question 7 · from 5.3 · Calculate

What is the marginal revenue product of the third assembler, in dollars a day?

dollars a day

Uses the same setup as question 4, above.

Question 8 · from 5.4 · Calculate

How many workers does Ridgeline hire to maximize profit?

workers

Question 9 · from 5.1 · Decide and justify

The wage for warehouse workers in a city rises from $18 to $20 an hour, and nothing else changes. What happens to the quantity of warehouse workers that firms want to hire?

Which reason supports your choice?

Setup for question 10

The market for welders in Tarsa is perfectly competitive. The table shows how many welders shipyards want to hire, and how many people want to work as welders, at each hourly wage. Then the price of new ships rises sharply, and at every wage shipyards want 1,000 more welders than before. Nothing changes on the workers' side.

Welders in Tarsa before the price of ships rises
Wage per hourWelders demandedWelders supplied
$246,0004,000
$265,5004,500
$285,0005,000
$304,5005,500
$324,0006,000

Question 10 · from 5.2 · Calculate

After the price of ships rises, what is the new equilibrium wage for welders, in dollars per hour?

dollars per hour

0 of 10 answered.