Question 1

Increases in the productivity of labor tend to

Accepted Answer

A) increase the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor. 
B) decrease the marginal revenue product of labor and increase the wages employers are willing to pay for any given amount of labor. 
C) increase the marginal revenue product of labor but have no effect on the wages employers are willing to pay for any given amount of labor. 
D) decrease the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor. 
A) increase the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor. 
B) decrease the marginal revenue product of labor and increase the wages employers are willing to pay for any given amount of labor. 
C) increase the marginal revenue product of labor but have no effect on the wages employers are willing to pay for any given amount of labor. 
D) decrease the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor.

Question 2

If Peter produces 3 times as much per hour as Julia,we would say that he is ______ times as productive as she is.

Accepted Answer

The answer of If Peter produces 3 times as much...

Question 3

A sharp rise in the price of oil from the fall of 2007 to the summer of 2008 led to a decline in the demand for large cars.This decline in demand for an output,

Accepted Answer

A) led to a decline in the derived demand for autoworkers. 
B) led to an increase in the derived demand for autoworkers. 
C) had no impact on the derived demand for autoworkers. 
A) led to a decline in the derived demand for autoworkers. 
B) led to an increase in the derived demand for autoworkers. 
C) had no impact on the derived demand for autoworkers.

Question 4

You can find the MRP by multiplying marginal physical product by price for

Accepted Answer

A) both the perfect competitor and the imperfect competitor. 
B) neither the perfect competitor nor the imperfect competitor. 
C) only the perfect competitor. 
D) only the imperfect competitor. 
A) both the perfect competitor and the imperfect competitor. 
B) neither the perfect competitor nor the imperfect competitor. 
C) only the perfect competitor. 
D) only the imperfect competitor.

Question 5

As the price of washing machines fell,tens of millions of housewives substituted _______ for ______.

Accepted Answer

The answer of As the price of washing machines fell,tens...

Question 6

The demand for a resource rises as

Accepted Answer

A) its productivity rises and the relative prices of substitutable resources rises. 
B) its productivity rises and the prices of substitutable resources falls. 
C) its productivity falls and the relative prices of substitutable resources falls. 
D) its productivity falls and prices of substitutable resources falls. 
A) its productivity rises and the relative prices of substitutable resources rises. 
B) its productivity rises and the prices of substitutable resources falls. 
C) its productivity falls and the relative prices of substitutable resources falls. 
D) its productivity falls and prices of substitutable resources falls.

Question 7

The MRP is the additional ___________ obtained by using one more unit of input.

Accepted Answer

The answer of The MRP is the additional ___________ obtained...

Question 8

In general,as units of resource inputs rise,their marginal revenue product

Accepted Answer

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

Question 9

The marginal revenue product schedule is a

Accepted Answer

A) demand schedule for a final product. 
B) demand schedule for a resource. 
C) supply schedule for a final product. 
D) supply schedule for a resource. 
A) demand schedule for a final product. 
B) demand schedule for a resource. 
C) supply schedule for a final product. 
D) supply schedule for a resource.

Question 10

Marginal revenue product is the additional revenue obtained by selling the output of _________________.

Accepted Answer

1 more uni

Question 11

An increase in the price of steel will result in

Accepted Answer

A) a decrease in the prices of automobiles. 
B) an increase in the cost of labor to produce automobiles. 
C) an increase in the equilibrium quantity of automobiles. 
D) a decrease in the supply of automobiles. 
A) a decrease in the prices of automobiles. 
B) an increase in the cost of labor to produce automobiles. 
C) an increase in the equilibrium quantity of automobiles. 
D) a decrease in the supply of automobiles.

Question 12

If the MRP of labor were $50 and the wage rate were $100,

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 13

If at a firm's current level of employment the marginal revenue product of the last worker employed is less than the marginal cost of labor,the firm should

Accepted Answer

A) provide more on-the-job training. 
B) maintain the existing level of employment. 
C) decrease employment. 
D) increase employment. 
A) provide more on-the-job training. 
B) maintain the existing level of employment. 
C) decrease employment. 
D) increase employment.

Question 14

A firm will keep hiring more workers until the MRP of the last worker hired is equal to the __________.

Accepted Answer

The answer of A firm will keep hiring more workers...

Question 15

$$\begin{array} { c c c c c c } 
\begin{array} { c } 
\text { Units } \
\text { of } \
\text { Labor }
\end{array} & \text { Output } & \begin{array} { c } 
\text { Marginal } \
\text { Physical } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Price }
\end{array} & \begin{array} { r } 
\text { Revenue } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Parginal } \
\text { Pevenue } \
\text { Product }
\end{array} \
1 & 15 & & \$ 30 & & \
2 & 29 & & 29 & & \
3 & 42 & & 28 & & \
4 & 52 & & 27 & & \
5 & 60 & & 26 & & \
6 & 66 & & 25 & & \
7 & 70 & & 24 & & \
8 & 71 & & 23 & &
\end{array}$$
-Fill in the above table.

Accepted Answer

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

Question 16

A fall in the demand for the final product brings about

Accepted Answer

A) a rise in derived demand. 
B) a fall in derived demand. 
C) no change in derived demand. 
A) a rise in derived demand. 
B) a fall in derived demand. 
C) no change in derived demand.

Question 17

Statement I.We say that two resources are complements in production if an increase in one requires a decrease in the other.
Statement II.Capital and labor are both complementary resources and substitute resources.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 18

If the MRP of the last acre of land hired is lower than the rent,the firm has hired _______.

Accepted Answer

too many a

Question 19

Marginal output and marginal physical product are

Accepted Answer

A) directly related. 
B) inversely related. 
C) weakly related. 
D) strongly relateD. 
E) identical. 
A) directly related. 
B) inversely related. 
C) weakly related. 
D) strongly relateD. 
E) identical.

Question 20

An auto service station has four mechanics.If the marginal revenue product of the fourth worker is $375 per day and the mechanics are paid $150 per day,the firm

Accepted Answer

A) can make a greater profit by laying off some of the mechanics. 
B) can make a higher profit by hiring more mechanics. 
C) is maximizing profits. 
D) will reduce its profits if it hires more mechanics. 
A) can make a greater profit by laying off some of the mechanics. 
B) can make a higher profit by hiring more mechanics. 
C) is maximizing profits. 
D) will reduce its profits if it hires more mechanics.

Exam 26: Demand in the Factor Market

Increases in the productivity of labor tend to

If Peter produces 3 times as much per hour as Julia,we would say that he is ______ times as productive as she is.

A sharp rise in the price of oil from the fall of 2007 to the summer of 2008 led to a decline in the demand for large cars.This decline in demand for an output,

You can find the MRP by multiplying marginal physical product by price for

As the price of washing machines fell,tens of millions of housewives substituted _______ for ______.

The demand for a resource rises as

The MRP is the additional ___________ obtained by using one more unit of input.

In general,as units of resource inputs rise,their marginal revenue product

The marginal revenue product schedule is a

Marginal revenue product is the additional revenue obtained by selling the output of _________________.

An increase in the price of steel will result in

If the MRP of labor were $50 and the wage rate were $100,

If at a firm's current level of employment the marginal revenue product of the last worker employed is less than the marginal cost of labor,the firm should

A firm will keep hiring more workers until the MRP of the last worker hired is equal to the __________.

Units of Labor Output Marginal Physical Product Total Price Revenue Product Parginal Pevenue Product 1 15 \ 30 2 29 29 3 42 28 4 52 27 5 60 26 6 66 25 7 70 24 8 71 23 -Fill in the above table.

A fall in the demand for the final product brings about

Statement I.We say that two resources are complements in production if an increase in one requires a decrease in the other. Statement II.Capital and labor are both complementary resources and substitute resources.

If the MRP of the last acre of land hired is lower than the rent,the firm has hired _______.

Marginal output and marginal physical product are

An auto service station has four mechanics.If the marginal revenue product of the fourth worker is $375 per day and the mechanics are paid $150 per day,the firm

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

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As the price of washing machines fell,tens of millions of housewives substituted _ for .