Question 1

How much of a resource a firm will purchase depends on three things: (1)_______, (2)_________;and (3)_________.

Accepted Answer

(1 the price of that resource;

Question 2

How many workers would the firm hire if the wage rate were $10?

Accepted Answer

The answer of How many workers would the firm hire...

Question 3

The demand for goods and services is called ____ demand,while the demand for resources is called ____ demand.

Accepted Answer

A) derived;derived 
B) final;final 
C) final;derived 
D) derive;final 
A) derived;derived 
B) final;final 
C) final;derived 
D) derive;final

Question 4

If a large increase in the wage rate leads to a net increase in the use of capital by a firm,then

Accepted Answer

A) the substitution effect outweighed the output effect. 
B) the output effect outweighed the substitution effect. 
C) the substitution and output effects are equal. 
D) there is no way to estimate the relative size of the substitution and output effect. 
A) the substitution effect outweighed the output effect. 
B) the output effect outweighed the substitution effect. 
C) the substitution and output effects are equal. 
D) there is no way to estimate the relative size of the substitution and output effect.

Question 5

Is the firm a perfect competitor or an imperfect competitor?

Accepted Answer

Imperfect

Question 6

A firm will use more and more labor until the marginal revenue product of labor

Accepted Answer

A) rises to the level of the wage rate. 
B) falls to the level of the wage rate. 
C) rises above the wage rate. 
D) falls below the wage rate. 
A) rises to the level of the wage rate. 
B) falls to the level of the wage rate. 
C) rises above the wage rate. 
D) falls below the wage rate.

Question 7

If the wage rate were $90,how many workers would be hired?

Accepted Answer

The answer of If the wage rate were $90,how many...

Question 8

If the wage rate were $250,how many workers would be hired?

Accepted Answer

The answer of If the wage rate were $250,how many...

Question 9

More complementary resources would ____________ the productivity and the marginal revenue product of labor.

Accepted Answer

A) tend to raise 
B) tend to lower 
C) not effect 
A) tend to raise 
B) tend to lower 
C) not effect

Question 10

Is the firm a perfect competitor or an imperfect competitor? Explain.

Accepted Answer

A perfect competitor

Question 11

The demand for a resource is influenced by each of these factors except

Accepted Answer

A) the price of that resource. 
B) the price of the substitute resources. 
C) the demand for the final product. 
D) the productivity of that resource. 
A) the price of that resource. 
B) the price of the substitute resources. 
C) the demand for the final product. 
D) the productivity of that resource.

Question 12

If land and capital are complementary resources and the price of land goes down,the employment of capital _____.

Accepted Answer

The answer of If land and capital are complementary resources...

Question 13

The additional output that one additional input of labor is responsible for is its

Accepted Answer

A) marginal revenue product. 
B) marginal physical product. 
C) average revenue product. 
D) average physical product. 
A) marginal revenue product. 
B) marginal physical product. 
C) average revenue product. 
D) average physical product.

Question 14

If the wage rate were $420,how many workers would be hired?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
E) 5 
A) 1 
B) 2 
C) 3 
D) 4 
E) 5

Question 15

All other things staying the same,an increase in the amount of labor would cause the marginal productivity of capital to

Accepted Answer

A) remain the same. 
B) decrease. 
C) increase. 
D) increase at a decreasing rate and then remain constant. 
A) remain the same. 
B) decrease. 
C) increase. 
D) increase at a decreasing rate and then remain constant.

Question 16

All of the following affect the demand for labor by a firm except

Accepted Answer

A) the amount of labor that will be supplied at different wages. 
B) the level of demand for the firm's products. 
C) the marginal physical product of the labor. 
D) the marginal revenue the firm receives for its products. 
A) the amount of labor that will be supplied at different wages. 
B) the level of demand for the firm's products. 
C) the marginal physical product of the labor. 
D) the marginal revenue the firm receives for its products.

Question 17

Marginal Revenue Product with three units of labor would be

Accepted Answer

A) $160. 
B) $200. 
C) $260. 
D) $460. 
E) None of the choices are correct. 
A) $160. 
B) $200. 
C) $260. 
D) $460. 
E) None of the choices are correct.

Question 18

A firm's demand schedule for labor services

Accepted Answer

A) is independent of the demand for the firm's output. 
B) will not change if technology changes. 
C) depends on the amount of other inputs used by the firm. 
D) is not related to the price of the firm's output. 
A) is independent of the demand for the firm's output. 
B) will not change if technology changes. 
C) depends on the amount of other inputs used by the firm. 
D) is not related to the price of the firm's output.

Question 19

If the MRP of an acre of land were $1,000 and its rent were $500,

Accepted Answer

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

Question 20

If the marginal physical product of the fourth acre of land used were 10,the MPP of the fifth acre were 6,the MPP of the sixth acre were 2,the MPP of the seventh acre were 0,and the MPP of the eighth acre were -3,what is the maximum number of acres of land that would be used?

Accepted Answer

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

Exam 26: Demand in the Factor Market

How much of a resource a firm will purchase depends on three things: (1)_______, (2)_________;and (3)_________.

How many workers would the firm hire if the wage rate were $10?

The demand for goods and services is called ____ demand,while the demand for resources is called ____ demand.

If a large increase in the wage rate leads to a net increase in the use of capital by a firm,then

Is the firm a perfect competitor or an imperfect competitor?

A firm will use more and more labor until the marginal revenue product of labor

If the wage rate were $90,how many workers would be hired?

If the wage rate were $250,how many workers would be hired?

More complementary resources would ____________ the productivity and the marginal revenue product of labor.

Is the firm a perfect competitor or an imperfect competitor? Explain.

The demand for a resource is influenced by each of these factors except

If land and capital are complementary resources and the price of land goes down,the employment of capital _____.

The additional output that one additional input of labor is responsible for is its

If the wage rate were $420,how many workers would be hired?

All other things staying the same,an increase in the amount of labor would cause the marginal productivity of capital to

All of the following affect the demand for labor by a firm except

Marginal Revenue Product with three units of labor would be

A firm's demand schedule for labor services

If the MRP of an acre of land were $1,000 and its rent were $500,

If the marginal physical product of the fourth acre of land used were 10,the MPP of the fifth acre were 6,the MPP of the sixth acre were 2,the MPP of the seventh acre were 0,and the MPP of the eighth acre were -3,what is the maximum number of acres of land that would be used?

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

How much of a resource a firm will purchase depends on three things: (1)___, (2)_;and (3)_____.

The demand for goods and services is called demand,while the demand for resources is called demand.