19b

Now that Sheila has completed her bachelor's degree, she has decided to pursue her master's degree. Sheila's choice of additional education is called an investment in:

Human capital

In terms of contribution to total income, the single most important factor of production is:

Labor

As a general rule, a profit-maximizing restaurant owner employs each factor of production up to the point at which the value of the marginal product of the ________ unit of the factor employed is ________ that factor's price.

Last;equal to

Manufactured resources such as equipment, buildings, and tools are also known as:

Physical capital

Which of the following is not true about the factor distribution of income?

The returns to human capital are easily measured.

Over the last several years, the demand for phone operators has fallen dramatically. Which of the following would be a reason for this development?

an increase in the number of automated answering services

A backward-bending supply curve of labor shows that at relatively high wages the:

income effect dominates the substitution effect, and the supply curve has a negative slope.

Which of the following instances of wage disparity is an example of the existence of compensating differentials?

A window washer working in a suburban residential subdivision gets paid less than one who is washing windows on the outside of a skyscraper.

A nurse willing to work the midnight to 8 A.M. shift may make more than one who works 8 A.M. to 4 P.M. because of:

Compensating differentials

When the demand for automobiles is high, the demand for workers who build automobiles is high. This relationship between the market for autos and the market for the labor that builds automobiles is why demand in a factor market is called:

Derived demand