Question 1

As output rises,

Accepted Answer

A) marginal revenue product declines. 
B) marginal revenue product stays the same. 
C) marginal revenue product rises. 
D) there is no way to determine if marginal revenue product will fall,rise,or remain the same. 
A) marginal revenue product declines. 
B) marginal revenue product stays the same. 
C) marginal revenue product rises. 
D) there is no way to determine if marginal revenue product will fall,rise,or remain the same.

Question 2

If the price that a perfect competitor receives for her final product rises by 50%,the firm's MRP schedule will shift to the _________.

Accepted Answer

The answer of If the price that a perfect competitor...

Question 3

When we have an optimum resource mix for the firm,

Accepted Answer

A) the MRP of land = the price of land. 
B) the MPP of land = the price of land. 
C) All of the choices are true. 
D) Neither of the choices are true. 
A) the MRP of land = the price of land. 
B) the MPP of land = the price of land. 
C) All of the choices are true. 
D) Neither of the choices are true.

Question 4

A decrease in interest rates would

Accepted Answer

A) increase the demand for capital. 
B) decrease the demand for capital. 
C) increase the supply of capital. 
D) decrease the supply of capital. 
E) None of the choices are true. 
A) increase the demand for capital. 
B) decrease the demand for capital. 
C) increase the supply of capital. 
D) decrease the supply of capital. 
E) None of the choices are true.

Question 5

A rise in the wage rate would lead to a movement

Accepted Answer

A) down the MRP curve and a rise in the number of workers hired. 
B) down the MRP curve and a decline in the number of workers hired. 
C) up the MRP curve and a decline in the number of workers hired. 
D) up the MRP curve and a rise in the number of workers hireD. 
A) down the MRP curve and a rise in the number of workers hired. 
B) down the MRP curve and a decline in the number of workers hired. 
C) up the MRP curve and a decline in the number of workers hired. 
D) up the MRP curve and a rise in the number of workers hireD.

Question 6

Marginal Revenue Product with six units of labor would be

Accepted Answer

A) $70. 
B) $60. 
C) $120. 
D) -$60. 
A) $70. 
B) $60. 
C) $120. 
D) -$60.

Question 7

$\begin{array}{l}
\text { Unit of}&\text { Output}&\text { Marginal }&\text {Price } &\text { Total } & \text { Marginal } \
\text { Labor}&&\text { Physical } &&\text { Revenue } & \text { Revenue } \
&&\text { Product } &&\text { Product } & \text { Product }\
1 & 10 && \$ 10 \
2 & 26 && 10 \
3 & 46 && 10 \
4 & 60 && 10 \
5 & 70 && 10 \
6 & 76 && 10 \
7 & 78 && 10 \
8 & 78 && 10
\end{array}$
-The maximum number of workers hired is

Accepted Answer

A) 4. 
B) 5. 
C) 6. 
D) 7. 
E) 8. 
A) 4. 
B) 5. 
C) 6. 
D) 7. 
E) 8.

Question 8

If the MRP of labor were $100 and the wage rate were $200,

Accepted Answer

A) exactly the right amount of labor is being used. 
B) not enough labor is being used. 
C) only half as much labor is being used as should be used. 
D) too much labor is being used. 
A) exactly the right amount of labor is being used. 
B) not enough labor is being used. 
C) only half as much labor is being used as should be used. 
D) too much labor is being used.

Question 9

$\begin{array} { c c c c c c } 
\begin{array} { c } 
\text { Units } \
\text { of } \
\text { Land }
\end{array} & \begin{array} { c } 
\text { MRP } \
\text { of } \
\text { Land }
\end{array} & \begin{array} { c } 
\text { Units } \
\text { of } \
\text { Capital }
\end{array} & \begin{array} { c } 
\text { MRP of } \
\text { Capital }
\end{array} & \begin{array} { c } 
\text { Units } \
\text { of } \
\text { Labor }
\end{array} & \begin{array} { c } 
\text { MRP of } \
\text { Labor }
\end{array} \
1 & \$ 40 & 1 & \$ 29 & 1 & \$ 14 \
2 & 38 & 2 & 28 & 2 & 13 \
3 & 34 & 3 & 25 & 3 & 11 \
4 & 25 & 4 & 18 & 4 & 9 \
5 & 15 & 5 & 10 & 5 & 6 \
6 & 2 & 6 & 6 & 6 & 4 \
7 & 0 & 7 & 2 & 7 & 2 \
\end{array}\
~~~~~~~\text { Rent } = \$ 15 ~~~~~~~~~~~~~~~~~~~~ \text { Interest } = \$ 18 ~~~~~~~~~~~~~~~~~ \text { Wage rate } = \$ 4
$
-How many units of capital would you hire?

Accepted Answer

The answer of \(\begin{array} { c c c c c...

Question 10

Productivity is output per unit of __________.

Accepted Answer

The answer of Productivity is output per unit of __________....

Question 11

How much of a resource a firm will purchase depends on

Accepted Answer

A) the price of that resource. 
B) the productivity of that resource. 
C) the selling price of the final product that the resource helps to produce. 
D) the selling prices of close substitutes of the final product. 
E) All of the choices are correct. 
A) the price of that resource. 
B) the productivity of that resource. 
C) the selling price of the final product that the resource helps to produce. 
D) the selling prices of close substitutes of the final product. 
E) All of the choices are correct.

Question 12

(a)Fill in Table.(b)Is the firm a perfect or an imperfect competitor? Explain.(c)If the wage rate were $115,how many workers would be hired? How much would the total wage bill come to? (d)If the wage rate were $60,how many workers would be hired? How much would the total wage bill come to? (e)How many workers would be hired if the wage rate were $16? (f)How many workers would the firm want to hire if the wage rate were $0?
$\begin{array}{c}
\begin{array}{c}
(1)\
 Units\
 of\
 Labor
\end{array}&\begin{array}{c}
(2)\
\
 \
 Output
\end{array}&\begin{array}{c}
(3)\
Marginal\
Physical\
Product
\end{array}&\begin{array}{c}
(4)\
\
 \
 Price
\end{array}&\begin{array}{c}
(5)\
Total\
Revenue\
Product\
\end{array}&\begin{array}{c}
(6)\
Marginal\
Revenue\
Product
\end{array}\
1 & 10 & - & \$ 17 & - & - \
2 & 20 &-& 16 & - & - \
3 & 29 & - & 15 & - & - \
4 & 37 & - & 14 & - & - \
5 & 44 & - & 13 & - & - \
6 & 49 & - & 12 & - & - \
7 & 53 & - & 11 & - & - \
8 & 55 &-& 10 & - & - &
\end{array}$

Accepted Answer

@#IMG-DLM& 
(a)
 @#IMG-DLM& 
(b)The firm is an imp

Question 13

A widespread outbreak of Mad Cow disease,which leads to the destruction of thousands of cattle,is likely to

Accepted Answer

A) put downward pressure on the price of milk. 
B) put upward pressure on the price of milk. 
C) increase the supply of milk. 
D) increase the quantity of milk demandeD. 
A) put downward pressure on the price of milk. 
B) put upward pressure on the price of milk. 
C) increase the supply of milk. 
D) increase the quantity of milk demandeD.

Question 14

The marginal revenue product schedule for land refers to

Accepted Answer

A) a firm's demand for land. 
B) the final demand for land. 
C) the final supply of land. 
D) the firm's supply of lanD. 
E) the marginal physical product schedule for land. 
A) a firm's demand for land. 
B) the final demand for land. 
C) the final supply of land. 
D) the firm's supply of lanD. 
E) the marginal physical product schedule for land.

Question 15

Capital and labor are both ___________ and ___________ factors of production.

Accepted Answer

substitute

Question 16

This producer

Accepted Answer

A) is a perfect competitor. 
B) is an imperfect competitor. 
C) could be either a perfect or imperfect competitor. 
A) is a perfect competitor. 
B) is an imperfect competitor. 
C) could be either a perfect or imperfect competitor.

Question 17

In general,the MRP _____ as output increases.

Accepted Answer

A) declines 
B) rises 
C) stays the same 
A) declines 
B) rises 
C) stays the same

Exam 26: Demand in the Factor Market

As output rises,

If the price that a perfect competitor receives for her final product rises by 50%,the firm's MRP schedule will shift to the _________.

When we have an optimum resource mix for the firm,

A decrease in interest rates would

A rise in the wage rate would lead to a movement

Marginal Revenue Product with six units of labor would be

Unit of Output Marginal Price Total Marginal Labor Physical Revenue Revenue Product Product Product 1 10 \ 10 2 26 10 3 46 10 4 60 10 5 70 10 6 76 10 7 78 10 8 78 10 -The maximum number of workers hired is

If the MRP of labor were $100 and the wage rate were $200,

Productivity is output per unit of __________.

How much of a resource a firm will purchase depends on

A widespread outbreak of Mad Cow disease,which leads to the destruction of thousands of cattle,is likely to

The marginal revenue product schedule for land refers to

Capital and labor are both ___________ and ___________ factors of production.

This producer

In general,the MRP _____ as output increases.

A Brief Economic History of the United States

Resource Utilization

The Mixed Economy

Supply and Demand

The Household Consumption Sector

The Business Investment Sector

The Government Sector

The Export-Import Sector

Gross Domestic Product

Economic Fluctuations, unemployment, and Inflation

Classical and Keynesian Economics

Fiscal Policy and the National Debt

Money and Banking

The Federal Reserve and Monetary Policy

A Century of Economic Theory

Economic Growth and Productivity

Demand,supply,and Equilibrium

The Price Elasticities of Demand and Supply

Theory of Consumer Behavior

Cost

Profit, loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Labor Unions

Labor Markets and Wage Rates

Rent, interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters

Capital and labor are both _ and _ factors of production.