Question

1)Farming in poor countries is considered to be:

• labor intensive.

• production intensive.

• capital intensive.

• cost intensive.

2) All of the following are true of the labor-supply and labor-demand curves intersection except they:

• intersect at the profit-maximizing quantity for the firms in the market.

• intersect at the revenue-maximizing quantity for the firms in the market.

• only intersect once.

• intersect at the equilibrium wage.

3) In general, economists place all factors of production into which three categories?

• Land, labor, and capital

• Technology, land, and capital

• Land, labor, and technology

• Technology, labor, and capital

4) A monopsony is an example of:

• a buyer holding market power.

• a seller holding market power.

• an efficient market with no market power.

• a single seller holding all market power.

5) For any competitive labor market, what change would have to occur to cause the labor supply to increase and shift the supply curve right?

• Opportunity cost of work increases

• Opportunity cost of work decreases

• Number of firms increases

• Number of workers decreases

Answer 1

Q1. Option 1. As it requires more labor

Q2. Option 3. It changes with changes in market conditions

Q3. Option 1

Q4. Option a. When there is only sole buyer in the market

Q5. . Option 1. As labors would prefer working than preferring leisure