Question 1

Which of the following scenarios would serve to decrease the demand for unskilled labor in our country?

Accepted Answer

A) increased productivity gains among the unskilled laborers. 
B) increased demand for goods produced by unskilled labor. 
C) increased international trade with countries where unskilled labor is more plentiful. 
D) increased supply of migrant workers. 
A) increased productivity gains among the unskilled laborers. 
B) increased demand for goods produced by unskilled labor. 
C) increased international trade with countries where unskilled labor is more plentiful. 
D) increased supply of migrant workers.

Question 2

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)

Accepted Answer

A) derived demand. 
B) independent demand. 
C) declining proportions demand. 
D) elastic demand. 
A) derived demand. 
B) independent demand. 
C) declining proportions demand. 
D) elastic demand.

Question 3

The figure below depicts a production function for a firm that produces cookies.
Figure 12-4
  
-Refer to Figure 12-4.With regard to cookie production,the figure implies

Accepted Answer

A) diminishing marginal product of workers. 
B) diminishing marginal cost of cookie production. 
C) decreasing cost of cookie production. 
D) increasing marginal product of workers. 
A) diminishing marginal product of workers. 
B) diminishing marginal cost of cookie production. 
C) decreasing cost of cookie production. 
D) increasing marginal product of workers.

Question 4

If a college education did not increase worker productivity,

Accepted Answer

A) no one would go to college. 
B) the earnings of workers with a college education would tend to be the same as for workers without a college degree. 
C) the earnings of workers with a college education would still be higher than for those without a college degree. 
D) the earnings of workers with a college education would be lower than for those without a college degree. 
A) no one would go to college. 
B) the earnings of workers with a college education would tend to be the same as for workers without a college degree. 
C) the earnings of workers with a college education would still be higher than for those without a college degree. 
D) the earnings of workers with a college education would be lower than for those without a college degree.

Question 5

If unskilled labor is relatively plentiful and cheap in many foreign countries,then as the United States expands its trade with these foreign countries,the domestic demand for

Accepted Answer

A) unskilled labor will rise and skilled labor will fall. 
B) skilled labor will rise and unskilled labor will fall. 
C) both skilled and unskilled labor will rise proportionately. 
D) both skilled and unskilled labor will be unaffected,assuming no barriers to free trade. 
A) unskilled labor will rise and skilled labor will fall. 
B) skilled labor will rise and unskilled labor will fall. 
C) both skilled and unskilled labor will rise proportionately. 
D) both skilled and unskilled labor will be unaffected,assuming no barriers to free trade.

Question 6

A decrease in the price of a resource would cause

Accepted Answer

A) producers to substitute other inputs for the resource. 
B) the cost of products made from the resource to fall. 
C) producers to use more of the resource. 
D) none of the above. 
E) both b and c above. 
A) producers to substitute other inputs for the resource. 
B) the cost of products made from the resource to fall. 
C) producers to use more of the resource. 
D) none of the above. 
E) both b and c above.

Question 7

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

Accepted Answer

A) The price of air travel would increase. 
B) The demand for large cars would increase. 
C) The price of gasoline would increase. 
D) The wages of workers in the automobile industry would fall. 
A) The price of air travel would increase. 
B) The demand for large cars would increase. 
C) The price of gasoline would increase. 
D) The wages of workers in the automobile industry would fall.

Question 8

Which of the following is the best example of an investment in human capital?

Accepted Answer

A) on-the-job training received by an apprentice electrician 
B) an increase in the number of hours worked per week by a worker in an unskilled laboring job 
C) the purchase of company stock by a worker 
D) payments into a retirement pension plan by a skilled laborer 
A) on-the-job training received by an apprentice electrician 
B) an increase in the number of hours worked per week by a worker in an unskilled laboring job 
C) the purchase of company stock by a worker 
D) payments into a retirement pension plan by a skilled laborer

Question 9

Other things constant,if the demand for computer scientists rises,

Accepted Answer

A) the wages of computer scientists will tend to fall. 
B) employment of computer scientists will tend to rise. 
C) there will be a surplus of computer scientists. 
D) there will be a shortage of computer scientists. 
A) the wages of computer scientists will tend to fall. 
B) employment of computer scientists will tend to rise. 
C) there will be a surplus of computer scientists. 
D) there will be a shortage of computer scientists.

Question 10

The derived demand curve for a resource is downward sloping because

Accepted Answer

A) the demand for products that utilize the resource is directly related to the price of the resource. 
B) the marginal productivity of resources will decline as their price increases. 
C) as the price of a resource rises,other resources will be less desirable than the higher priced resource. 
D) other resources will be substituted for a resource that increases in price. 
A) the demand for products that utilize the resource is directly related to the price of the resource. 
B) the marginal productivity of resources will decline as their price increases. 
C) as the price of a resource rises,other resources will be less desirable than the higher priced resource. 
D) other resources will be substituted for a resource that increases in price.

Question 11

If coal and oil are substitute inputs in the production of electricity,an increase in the price of oil

Accepted Answer

A) will increase the demand for coal. 
B) will reduce the demand for coal. 
C) will increase the supply of coal. 
D) will reduce the supply of coal. 
E) will not affect the demand for coal. 
A) will increase the demand for coal. 
B) will reduce the demand for coal. 
C) will increase the supply of coal. 
D) will reduce the supply of coal. 
E) will not affect the demand for coal.

Question 12

Prices in resource markets

Accepted Answer

A) provide users with information concerning the relative scarcity of resources. 
B) encourage the use of a resource now if its price is expected to rise in the future. 
C) provide suppliers with little incentive to develop more of those resources that are intensely demanded by users. 
D) have little impact on productive decisions unless they are closely regulated by the government. 
A) provide users with information concerning the relative scarcity of resources. 
B) encourage the use of a resource now if its price is expected to rise in the future. 
C) provide suppliers with little incentive to develop more of those resources that are intensely demanded by users. 
D) have little impact on productive decisions unless they are closely regulated by the government.

Question 13

Other things constant,if the demand for a final product is quite elastic,the demand for a resource used to produce the product will tend to be

Accepted Answer

A) highly inelastic. 
B) of unitary elasticity. 
C) a curve sloping upward to the right. 
D) quite elastic as well. 
A) highly inelastic. 
B) of unitary elasticity. 
C) a curve sloping upward to the right. 
D) quite elastic as well.

Question 14

Table 12-3
  
-Refer to Table 12-3.Suppose that the firm pays its workers $75 per day.Each unit of output sells for $10.How many days of labor should the firm hire?

Accepted Answer

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

Question 15

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 16

When the price of steel rises,Ford uses more aluminum in the production of its cars.This is an example of

Accepted Answer

A) substitution in consumption. 
B) substitution in production. 
C) a change in the marginal productivity of a resource. 
D) derived demand. 
A) substitution in consumption. 
B) substitution in production. 
C) a change in the marginal productivity of a resource. 
D) derived demand.

Question 17

A decrease in the marginal product of labor would be represented by

Accepted Answer

A) increase in labor demand. 
B) decrease in labor demand. 
C) increase in the quantity demanded of labor. 
D) decrease in the quantity demanded of labor. 
E) an increase in wages. 
A) increase in labor demand. 
B) decrease in labor demand. 
C) increase in the quantity demanded of labor. 
D) decrease in the quantity demanded of labor. 
E) an increase in wages.

Question 18

The supply curve of a human resource will be more elastic the

Accepted Answer

A) easier it is to obtain the skill and knowledge necessary to provide the resource. 
B) more elastic the demand for the product. 
C) more inelastic the demand for the product. 
D) higher the skill level necessary to perform the job. 
A) easier it is to obtain the skill and knowledge necessary to provide the resource. 
B) more elastic the demand for the product. 
C) more inelastic the demand for the product. 
D) higher the skill level necessary to perform the job.

Question 19

The demand for a factor of production depends largely on the

Accepted Answer

A) supply of the factor. 
B) supply of other factors of production. 
C) demand for other factors of production. 
D) demand for the products that it helps to produce. 
A) supply of the factor. 
B) supply of other factors of production. 
C) demand for other factors of production. 
D) demand for the products that it helps to produce.

Question 20

The following table 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 $65 per day,how many guards should the shop hire?

Accepted Answer

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

Exam 25: The Supply of and Demand for Productive Resources

Which of the following scenarios would serve to decrease the demand for unskilled labor in our country?

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)

The figure below depicts a production function for a firm that produces cookies. Figure 12-4 -Refer to Figure 12-4.With regard to cookie production,the figure implies

If a college education did not increase worker productivity,

If unskilled labor is relatively plentiful and cheap in many foreign countries,then as the United States expands its trade with these foreign countries,the domestic demand for

A decrease in the price of a resource would cause

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

Which of the following is the best example of an investment in human capital?

Other things constant,if the demand for computer scientists rises,

The derived demand curve for a resource is downward sloping because

If coal and oil are substitute inputs in the production of electricity,an increase in the price of oil

Prices in resource markets

Other things constant,if the demand for a final product is quite elastic,the demand for a resource used to produce the product will tend to be

Table 12-3 -Refer to Table 12-3.Suppose that the firm pays its workers $75 per day.Each unit of output sells for $10.How many days of labor should the firm hire?

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

When the price of steel rises,Ford uses more aluminum in the production of its cars.This is an example of

A decrease in the marginal product of labor would be represented by

The supply curve of a human resource will be more elastic the

The demand for a factor of production depends largely on the

The following table 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 $65 per day,how many guards should the shop hire?

The Economic Approach

Asome Tools of the Economist

Asupply,demand,and the Market Process

Asupply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Ataking the Nations Economic Pulse

Economic Fluctuations, unemployment, and Inflation

Aan Introduction to Basic Macroeconomic Markets

Dynamic Change, economic Fluctuations, and the Ad-As Model

Fiscal Policy: the Keynesian View and Historical Perspective

Fiscal Policy, incentives, and Secondary Effects

Amoney and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, output, and Employment

Creating an Environment for Growth and Prosperity

Institutions,policies,and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Consumer Choice and Elasticity

Acosts and the Supply of Goods

Aprice Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Aprice-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

Government Spending and Taxation

The Economics of Social Security

The Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Great Debates in Economics: Keynes Versus Hayek

The Crisis of 2008: Causes and Lessons for the Future

Lessons From the Great Depression

Lessons From Japan and Canada

The Federal Budget and the National Debt

The Economics of Healthcare

Education: Problems and Performance

Earnings Differences Between Men and Women

Do Labor Unions Increase the Wages of Workers

The Question of Resource Exhaustion

Difficult Environmental Cases and the Role of Government

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