Tackle the Test: Free-Response Questions

  1. Question

    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
    Refer to the table below. Assume the firm can sell all of the output it produces at a price of $15.

    698

    Rubric for FRQ 1 (7 points)

    1 point: MRPL = 150 × $15 = $2,250

    image

    1 point: The vertical axis is labeled “MRPL” and/or “Wage rate”; the horizontal axis is labeled “Quantity of labor.”

    1 point: MRPL is downward-sloping and labeled.

    1 point: MRPL is plotted using correct numbers (see graph).

    1 point: The demand curve for labor shifts to the right.

    1 point: MRPL curve is shown shifted to the right.

    1 point: The new quantities produced are 600; 1,100; 1,400; 1,600; 1,700; and 1,780.

  2. Question

    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
    Draw a separate, correctly labeled graph illustrating the effect of each of the following changes on the demand for labor. Adopt the usual ceteris paribus assumption that all else remains unchanged in each case.