Question

Dan owns one of the many bakeries in New York City. Which of the following events will lead to an increase in Dan's demand for the services of bakers?

(i)	The price of muffins increases. (Muffins are Dan's specialty.)
(ii)	Dan adds three new ovens to the kitchen area to help the bakers work faster.
(iii)	The bakers' wage rate decreases.

Group of answer choices

(i) and (ii) only

(ii) and (iii) only

(i) and (iii) only

(i), (ii), and (iii)

Which of the following events would shift a labor supply curve?

(i)	immigration of high-skilled workers
(ii)	immigration of low-skilled workers
(iii)	changes in the workers' wage rate

Group of answer choices

(i) and (ii) only

(ii) and (iii) only

(iii) only

(i), (ii), and (iii)

The tendency of those who are insured to take more risks as a result is a problem of:

Group of answer choices

free riding.

moral hazard.

adverse selection.

positive externalities.

Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day. If radios can be sold for $20 each, the value of marginal product of the ninth worker is

Group of answer choices

20 radios.

90 radios.

$200.

$400.

Table 3

Number of Workers (L)	Output of Firm A	Output of Firm B	Output of Firm C	Output of Firm D
1	200	200	200	200
2	160	380	600	400
3	120	540	1,200	600
4	80	680	2,000	800

Refer to Table 3. For Firm B, the marginal product of labor is

Group of answer choices

increasing.

constant.

decreasing.

negative.

Answer 1