Question 1

If there is a shortage of nurses, it is expected that

Accepted Answer

A)  wages for nurses will go up as hospitals try to fill these positions. 
B)  wages for nurses will go down because of the increased competition between hospitals. 
C)  the return on the human capital investment of current nursing majors will decline. 
D)  wages for nurses currently practicing will increase, but new nurses will experience lower wages in the future. 
A)  wages for nurses will go up as hospitals try to fill these positions. 
B)  wages for nurses will go down because of the increased competition between hospitals. 
C)  the return on the human capital investment of current nursing majors will decline. 
D)  wages for nurses currently practicing will increase, but new nurses will experience lower wages in the future.

Question 2

Which of the following would tend to decrease the demand for coal miners?

Accepted Answer

A)  an increase in the wages of coal miners 
B)  an increase in the price of oil 
C)  a decrease in the demand for coal 
D)  an increase in the supply of coal miners 
A)  an increase in the wages of coal miners 
B)  an increase in the price of oil 
C)  a decrease in the demand for coal 
D)  an increase in the supply of coal miners

Question 3

A decrease in the demand for a product will cause output of that product to

Accepted Answer

A)  increase and the demand for and prices of the resources used to produce the product to rise. 
B)  decrease and both the demand for and prices of the resources used to produce the product to fall. 
C)  decline; the demand for the resources used to produce the product will remain constant. 
D)  increase; the price of resources used to produce the product will rise if their supply is elastic but fall if supply is inelastic. 
A)  increase and the demand for and prices of the resources used to produce the product to rise. 
B)  decrease and both the demand for and prices of the resources used to produce the product to fall. 
C)  decline; the demand for the resources used to produce the product will remain constant. 
D)  increase; the price of resources used to produce the product will rise if their supply is elastic but fall if supply is inelastic.

Question 4

As the price paid to a resource increases,

Accepted Answer

A)  the supply of that resource will increase in the resource market. 
B)  the supply of that resource will decrease in the resource market. 
C)  resources will shift from other resource markets to this one. 
D)  resources will shift from this resource market to others. 
E)  resource usage will be unaffected. 
A)  the supply of that resource will increase in the resource market. 
B)  the supply of that resource will decrease in the resource market. 
C)  resources will shift from other resource markets to this one. 
D)  resources will shift from this resource market to others. 
E)  resource usage will be unaffected.

Question 5

Table 12-2
 
Refer to Table 12-2. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?

Accepted Answer

A)  1 worker 
B)  2 workers 
C)  3 workers 
D)  4 workers 
A)  1 worker 
B)  2 workers 
C)  3 workers 
D)  4 workers

Question 6

Use the table to answer the following question.
  If the market wage rate is $130 per week, how many workers should be employed if the firm wants to maximize profit?

Accepted Answer

A)  3 
B)  4 
C)  5 
D)  6 or more 
A)  3 
B)  4 
C)  5 
D)  6 or more

Question 7

Table 12-3
 
Refer to Table 12-3. What is the marginal product of the third worker?

Accepted Answer

A)  7 
B)  8 
C)  25 
D)  75 
A)  7 
B)  8 
C)  25 
D)  75

Question 8

If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is

Accepted Answer

A)  15 units of output. 
B)  5 units of output. 
C)  3 units of output. 
D)  45 units of output. 
E)  75 units of output. 
A)  15 units of output. 
B)  5 units of output. 
C)  3 units of output. 
D)  45 units of output. 
E)  75 units of output.

Question 9

When an employer pays the cost of educating a worker, it is likely that the employer

Accepted Answer

A)  is demonstrating altruistic motives. 
B)  is pursuing some objective other than profit-maximization. 
C)  hopes to recapture its investment in the form of increased labor productivity. 
D)  receives reimbursement from the government for the cost of the education. 
A)  is demonstrating altruistic motives. 
B)  is pursuing some objective other than profit-maximization. 
C)  hopes to recapture its investment in the form of increased labor productivity. 
D)  receives reimbursement from the government for the cost of the education.

Question 10

A change in the demand for a resource can be caused by which of the following?

Accepted Answer

A)  a change in the demand for the final product that uses the resource as a factor of production 
B)  a change in the productivity of the resource 
C)  a change in the price of other resources that could be used as substitutes for the resource in question 
D)  all of the above 
A)  a change in the demand for the final product that uses the resource as a factor of production 
B)  a change in the productivity of the resource 
C)  a change in the price of other resources that could be used as substitutes for the resource in question 
D)  all of the above

Question 11

If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource,

Accepted Answer

A)  more of the resource should be used. 
B)  less of the resource should be used. 
C)  the firm should pay a lower price for the resource. 
D)  the firm should pay a higher price for the resource. 
E)  the firm is using the optimal amount of the resource 
A)  more of the resource should be used. 
B)  less of the resource should be used. 
C)  the firm should pay a lower price for the resource. 
D)  the firm should pay a higher price for the resource. 
E)  the firm is using the optimal amount of the resource

Question 12

If the price of airline tickets falls, what will happen to the demand curve for flight attendants?

Accepted Answer

A)  It will shift to the right. 
B)  It will shift to the left. 
C)  The direction of the shift is ambiguous. 
D)  It will remain unchanged. 
A)  It will shift to the right. 
B)  It will shift to the left. 
C)  The direction of the shift is ambiguous. 
D)  It will remain unchanged.

Question 13

The short-run supply of a human resource will be more elastic the

Accepted Answer

A)  more elastic the demand for the product to be produced. 
B)  more inelastic the demand for the product to be produced. 
C)  lower the skill level necessary to perform the job. 
D)  harder it is to acquire the skill and knowledge necessary to provide the resource. 
A)  more elastic the demand for the product to be produced. 
B)  more inelastic the demand for the product to be produced. 
C)  lower the skill level necessary to perform the job. 
D)  harder it is to acquire the skill and knowledge necessary to provide the resource.

Question 14

A sudden increase in the demand for newly built homes will

Accepted Answer

A)  decrease the demand for lumber, bricks, and steel. 
B)  decrease the demand for construction workers and architects. 
C)  increase the marginal product of workers in the construction industry. 
D)  increase the demand for construction workers and architects. 
A)  decrease the demand for lumber, bricks, and steel. 
B)  decrease the demand for construction workers and architects. 
C)  increase the marginal product of workers in the construction industry. 
D)  increase the demand for construction workers and architects.

Question 15

If the price of cotton increases

Accepted Answer

A)  consumers will buy more cotton clothes. 
B)  consumers will increase their purchases of clothing made of other materials. 
C)  clothing producers will stop making cotton clothes. 
D)  clothing producers will not be able to adjust their output. 
A)  consumers will buy more cotton clothes. 
B)  consumers will increase their purchases of clothing made of other materials. 
C)  clothing producers will stop making cotton clothes. 
D)  clothing producers will not be able to adjust their output.

Question 16

An increase in the demand for automobiles will increase the demand for labor used to produce the automobiles due to

Accepted Answer

A)  an increase in the marginal revenue product of labor. 
B)  a decrease in the marginal revenue product of labor. 
C)  an increase in the marginal revenue product of automobiles. 
D)  a decrease in the marginal revenue product of automobiles. 
E)  a decrease in the price of automobiles. 
A)  an increase in the marginal revenue product of labor. 
B)  a decrease in the marginal revenue product of labor. 
C)  an increase in the marginal revenue product of automobiles. 
D)  a decrease in the marginal revenue product of automobiles. 
E)  a decrease in the price of automobiles.

Question 17

The following figure indicates the reductions in total losses due to theft if a jewelry store hires additional security guards.
 
If the security guards can be hired for $45 per day, how many guards should the shop hire?

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
E)  6 
A)  2 
B)  3 
C)  4 
D)  5 
E)  6

Question 18

Harold Brown runs a company that sells encyclopedia sets for $250 each. When he employs 10 workers, they can sell 60 sets per week, while only 54 sets are sold when 9 workers are employed. What is the weekly marginal revenue product of the tenth worker?

Accepted Answer

A)  $250 
B)  $1,250 
C)  $1,500 
D)  $15,000 
A)  $250 
B)  $1,250 
C)  $1,500 
D)  $15,000

Question 19

If the demand for computer scientists increases relative to their supply,

Accepted Answer

A)  the wages of computer scientists will decline. 
B)  a computer science major will be more attractive to college students. 
C)  the employment of computer scientists will fall. 
D)  there will be a surplus of computer scientists. 
A)  the wages of computer scientists will decline. 
B)  a computer science major will be more attractive to college students. 
C)  the employment of computer scientists will fall. 
D)  there will be a surplus of computer scientists.

Question 20

A profit-maximizing restaurant owner will hire more busboys to keep more tables clean and quickly available to new customers, as long as the

Accepted Answer

A)  marginal product of busboys exceeds the marginal product of other employees. 
B)  hourly wage of busboys is lower than that of cashiers and cooks. 
C)  marginal revenue product of busboys exceeds their wage rate. 
D)  wage of busboys exceeds the wage of other employees. 
A)  marginal product of busboys exceeds the marginal product of other employees. 
B)  hourly wage of busboys is lower than that of cashiers and cooks. 
C)  marginal revenue product of busboys exceeds their wage rate. 
D)  wage of busboys exceeds the wage of other employees.

If there is a shortage of nurses, it is expected that

Which of the following would tend to decrease the demand for coal miners?

A decrease in the demand for a product will cause output of that product to

As the price paid to a resource increases,

Table 12-2 Refer to Table 12-2. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?

Use the table to answer the following question. If the market wage rate is $130 per week, how many workers should be employed if the firm wants to maximize profit?

Table 12-3 Refer to Table 12-3. What is the marginal product of the third worker?

If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is

When an employer pays the cost of educating a worker, it is likely that the employer

A change in the demand for a resource can be caused by which of the following?

If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource,

If the price of airline tickets falls, what will happen to the demand curve for flight attendants?

The short-run supply of a human resource will be more elastic the

A sudden increase in the demand for newly built homes will

If the price of cotton increases

An increase in the demand for automobiles will increase the demand for labor used to produce the automobiles due to

The following figure indicates the reductions in total losses due to theft if a jewelry store hires additional security guards. If the security guards can be hired for $45 per day, how many guards should the shop hire?

Harold Brown runs a company that sells encyclopedia sets for $250 each. When he employs 10 workers, they can sell 60 sets per week, while only 54 sets are sold when 9 workers are employed. What is the weekly marginal revenue product of the tenth worker?

If the demand for computer scientists increases relative to their supply,

A profit-maximizing restaurant owner will hire more busboys to keep more tables clean and quickly available to new customers, as long as the

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Applying the Basics: Special Topics in Economics

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Exam 12: The Supply of and Demand for Productive Resources

If there is a shortage of nurses, it is expected that

Which of the following would tend to decrease the demand for coal miners?

A decrease in the demand for a product will cause output of that product to

As the price paid to a resource increases,

Table 12-2 Refer to Table 12-2. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?

Use the table to answer the following question. If the market wage rate is $130 per week, how many workers should be employed if the firm wants to maximize profit?

Table 12-3 Refer to Table 12-3. What is the marginal product of the third worker?

If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is

When an employer pays the cost of educating a worker, it is likely that the employer

A change in the demand for a resource can be caused by which of the following?

If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource,

If the price of airline tickets falls, what will happen to the demand curve for flight attendants?

The short-run supply of a human resource will be more elastic the

A sudden increase in the demand for newly built homes will

If the price of cotton increases

An increase in the demand for automobiles will increase the demand for labor used to produce the automobiles due to

The following figure indicates the reductions in total losses due to theft if a jewelry store hires additional security guards. If the security guards can be hired for $45 per day, how many guards should the shop hire?

Harold Brown runs a company that sells encyclopedia sets for $250 each. When he employs 10 workers, they can sell 60 sets per week, while only 54 sets are sold when 9 workers are employed. What is the weekly marginal revenue product of the tenth worker?

If the demand for computer scientists increases relative to their supply,

A profit-maximizing restaurant owner will hire more busboys to keep more tables clean and quickly available to new customers, as long as the

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Applying the Basics: Special Topics in Economics

Filters