chapter 18

Of the total income earned in the U.S. economy, approximately

67 percent is earned by workers, and 33 percent is earned by owners of land and capital.

Which of the following best illustrates the concept of "derived demand?"

An automobile producer's decision to supply more cars will lead to an increase in the demand for automobile production workers.

Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, what effect did this process have on the labor market for computer programmers? The equilibrium wage

increased, and the equilibrium quantity of labor increased.

A competitive, profit-maximizing firm hires workers up to the point where the

value of the marginal product equals the wage.

Refer to Table 18-10. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?

2 workers

Factor markets for chocolate bars are influenced by the

All of the above are correct.