A decrease in the supply of farm tractors will cause all but which of the following ?

Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war ?

A. Wages rise, and rental rates fall

B. Wages rise, and rental rates rise

C. Wages fall, and rental rates rise

D. Wages fall, and rental rates fall

An increase in the price of automobiles shifts the demand for autoworkers to the ?

A. left and decreases the wage

B. right and decreases the wage

C. right and increases the wage

D. left and increases the wage

A competitive profit-maximizing firm should hire workers up to the point where ?

A. the wage, the rental price of capital and the rental price of land are all equal

B. the marginal product of labor equals zero and the production function is maximized

C. the value of the marginal product of labor equals the wage

D. the marginal product of labor equals the wage

An individual firm’s demand for a factor of production ?

A. Slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby red

B. Slopes downward due to the factor’s diminishing marginal product

C. slopes upward due to the factor’s increasing marginal product

D. is perfectly elastic (horizontal) if the factor market is perfectly competitive

What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ?

A. increase the demand for fishing boats and decrease rental rates on fishing boats

B. decreases the demand for fishing boats and increase rental rates on fishing boats.

C. decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry

D. increase the demand for fishing boats and increase rental rates on fishing boats