Unit 5 Problem Set

Name Team Name

Integrity Agreement

I, (insert your name here), agree that all of the

work in this presentation is my original work. I agree to keep this work to myself this year and for future years. I understand that if this work is not my own original work or if I share my original work with others, that I will be sent to my GLC for academic dishonesty.

Digital Signature: type your full name here

1.

Define the term and explain a situation that demonstrates the ‘real world’ application of each of the following. Make sure your example clearly demonstrates your understanding of each concept. a. Derived Demand ( ____/5)

Type your answer in paragraph format. Please italicize your answer.

1b. Marginal Revenue Product (MRP) and Marginal Resource Cost (MRC) ( ____/5)

Type your answer in paragraph format. Please italicize your answer.

1c. Monopsony ( ____/5)

Type your answer in paragraph format. Please italicize your answer.

2.Use the chart regarding a perfectly competitive Yo-Yo factory to complete the following: d. Complete the chart: (_____/2) Number of Workers Output Marginal Product Price of Yo-Yos Total Revenue Marginal Revenue Product

7 8 9 0 1 2 3 4 5 6 0 20 50 70 85 95 100 103 104 100 ---- $2 -----

2a. Fully explain why the number of yo-yos produced increases at a decreasing rate as more workers are hired. Identify and explain the three stages of returns. ( ____/5)

Type your answer in paragraph format. Please italicize your answer.

2b. Explain how a firm decides how many workers to hire. If the wage was constant at $25 per day, how many workers should be hired? Explain how you got your answer. ( ____/5)

Type your answer in paragraph format. Please italicize your answer.

2c. Assume there is an increase in demand of yo-yos and they are now $3 each. Explain how the level of employment be affected. How many workers should be hired? Why did it change? ( ____/5)

Type your answer in paragraph format. Please italicize your answer.

3. Complete the Following Worksheets “How Wages are Determined in Competitive Labor Markets” (_____/12)

4. Practice FRQ

a. FRQ #1 (____/8)

-See worksheet

b. FRQ #2 (____/13)

-See worksheet

6. Turn It In Receipts ( _____/5)

-See ‘stamp sheet’

7. Format ( _____/5)

• • • • 1. _____/15 2. _____/17 3. _____/12

Total: _____/75

4._____/21 5. _____/5 6. _____/5 Peer Graded by: (drop in a comment box with

your name here)