Exam 12: The Supply of and Demand for Productive Resources

If the price of crude oil fell significantly, which of the following would be most likely to happen?

Generally, the supply of a resource in the short run will be

Use the information in the table below to answer the following question(s). The firm hires labor competitively and sells its product in a competitive price-taker market. Table 12-6 Refer to Table 12-6. What is the marginal revenue product of the fifth unit of labor?

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. If the firm is maximizing the marginal product of labor, what is the firm's marginal revenue product?

Suppose a new oxygen-enrichment process will cut in half the energy required to smelt copper. The firm selling licenses for this patented process will experience a greater demand for its product when

If the demand for a consumer good increases, the demand for resources required to make the good will

When a resource price is below equilibrium,

A decrease in the price of a resource would cause

In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has

Which of the following is the best definition of "physical capital"?

An unexpected decrease in the demand for accountants will lead to

Suppose a change in technology increases the marginal product of labor. The result is

When the marginal revenue product of an input is less than its price, the

Diane's Auto World installs tires on automobiles, light trucks, and sport utility vehicles. She is a profit-maximizing business owner whose firm operates in a competitive market. The marginal cost of installing a tire is $10. The marginal productivity of the last worker that Diane hired was 2 tires per hour. What is the maximum hourly wage that Diane was willing to pay the last worker hired?

Firms should hire additional units of a resource as long as the

Harold Brown runs a company that sells encyclopedia sets for $250. The following schedule indicates the number of sets per week that are sold as employment increases. If Brown's costs increase by $1,300 per week as additional workers are employed, how many workers should be employed in order to maximize profit?

Jim Smith runs a company that sells encyclopedia sets for $200 each. When he employs 5 workers, they can sell 20 sets per week, whereas only 17 sets are sold when 4 workers are employed. What is the weekly marginal revenue product of the fifth worker?

Unions often attempt to obtain stricter certification requirements and/or longer apprenticeships. These changes will tend to raise union workers' wages because they

If skilled labor is three times the cost of unskilled labor, a profit-maximizing firm will vary the quantity of each type of labor until the

Because the demand for a resource is highly dependent upon the demand for the final goods that the resource helps produce, the demand for a resource is called a(n)