Question 1

It will be profitable for a firm to hire additional units of any resource up to the point at which its MRP is equal to its MRC.

Accepted Answer

A) True 
 B)False

Question 2

Marginal resource cost is

Accepted Answer

A)  the increase in variable costs resulting from producing one more unit of output. 
B)  the increase in fixed costs resulting from producing one more unit of output. 
C)  the same as the marginal cost of the product. 
D)  the same as the resource price when a firm is acquiring the resource in a purely competitive market. 
A)  the increase in variable costs resulting from producing one more unit of output. 
B)  the increase in fixed costs resulting from producing one more unit of output. 
C)  the same as the marginal cost of the product. 
D)  the same as the resource price when a firm is acquiring the resource in a purely competitive market.

Question 3

Which of the following decreases in labor demand is due to a change in product demand?

Accepted Answer

A)  An increase in the price of paper increases the cost of making books, thus decreasing the demand for bookbinders. 
B)  The widespread availability of news on the web reduces the demand for newspaper workers. 
C)  An increase in the price of steel increases the cost of producing cars and trucks, thus decreasing the demand for automobile workers. 
D)  A decline in productivity in retailing decreases the demand for retail sales workers. 
A)  An increase in the price of paper increases the cost of making books, thus decreasing the demand for bookbinders. 
B)  The widespread availability of news on the web reduces the demand for newspaper workers. 
C)  An increase in the price of steel increases the cost of producing cars and trucks, thus decreasing the demand for automobile workers. 
D)  A decline in productivity in retailing decreases the demand for retail sales workers.

Question 4

If two resources are complementary, an increase in the price of one will increase the demand for the other.

Accepted Answer

A) True 
 B)False

It will be profitable for a firm to hire additional units of any resource up to the point at which its MRP is equal to its MRC.

Marginal resource cost is

Which of the following decreases in labor demand is due to a change in product demand?

If two resources are complementary, an increase in the price of one will increase the demand for the other.

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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Exam 16: The Demand for Resources

It will be profitable for a firm to hire additional units of any resource up to the point at which its MRP is equal to its MRC.

Marginal resource cost is

Which of the following decreases in labor demand is due to a change in product demand?

If two resources are complementary, an increase in the price of one will increase the demand for the other.

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters