Question 1

If the productivity of an assembly line worker rises from 6 rivets per minute to 9 rivets per minute,we can say that her productivity

Accepted Answer

A) fell by 50%. 
B) stayed the same. 
C) rose by 50%. 
D) rose by 100%. 
A) fell by 50%. 
B) stayed the same. 
C) rose by 50%. 
D) rose by 100%.

Question 2

In general,when the quantities of a complementary resource are increased,the productivity of the other resources

Accepted Answer

A) rise. 
B) fall. 
C) remain the same. 
A) rise. 
B) fall. 
C) remain the same.

Question 3

The concept of margin,or marginal

Accepted Answer

A) is central to economics. 
B) has little to do with economics. 
C) is applied only to a firm's costs. 
D) is applied only to a firm's output. 
A) is central to economics. 
B) has little to do with economics. 
C) is applied only to a firm's costs. 
D) is applied only to a firm's output.

Question 4

Suppose that the marginal revenue product of the fourth acre of land is $180 and the rent paid on that land is $200 an acre.We can say that

Accepted Answer

A) not enough land is being rented. 
B) just enough land is being rented. 
C) too much land is being rented. 
A) not enough land is being rented. 
B) just enough land is being rented. 
C) too much land is being rented.

Question 5

When the productivity of a resource declines,its ________ and its _________ also declines.

Accepted Answer

The answer of When the productivity of a resource declines,its...

Question 6

The demand for a resource rises as

Accepted Answer

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

Question 7

As lumber becomes more expensive

Accepted Answer

A) the quantity of lumber demanded will increase. 
B) the equilibrium quantity of new houses will decrease. 
C) the supply of new houses will increase. 
D) None of the choices are correct. 
A) the quantity of lumber demanded will increase. 
B) the equilibrium quantity of new houses will decrease. 
C) the supply of new houses will increase. 
D) None of the choices are correct.

Question 8

$\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 labor would you hire?

Accepted Answer

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

Question 9

Marginal Revenue Product with one unit of labor would be

Accepted Answer

A) $100. 
B) $140. 
C) $160. 
D) $260. 
E) None of the choices are correct. 
A) $100. 
B) $140. 
C) $160. 
D) $260. 
E) None of the choices are correct.

Question 10

$$\begin{array} { c c } 
& \begin{array} { c } 
\text { Marginal Physical }
\end{array} \
\text { Units of Labor } & \text { Product of Labor } \
1 & 5 \
2 & 8 \
3 & 10 \
4 & 8 \
5 & 5 \
6 & 2 \
7 & - 1
\end{array}$$
-When 2 units of labor are used,output is

Accepted Answer

A) 5. 
B) 8. 
C) 10. 
D) 13. 
E) 23. 
A) 5. 
B) 8. 
C) 10. 
D) 13. 
E) 23.

Question 11

If the price of a resource is raised,according to the substitution effect,_________;according to the output effect,________,thereby lowering the employment of all resources.

Accepted Answer

other resources will

Question 12

All of the following will decrease the demand for labor by firms in an industry except

Accepted Answer

A) a decrease in the prices of inputs that complement labor. 
B) a decrease in the demand for the product produced by the industry. 
C) a decrease in the price of the product produced by the industry. 
D) a decrease in the prices of inputs that substitute for labor. 
A) a decrease in the prices of inputs that complement labor. 
B) a decrease in the demand for the product produced by the industry. 
C) a decrease in the price of the product produced by the industry. 
D) a decrease in the prices of inputs that substitute for labor.

Question 13

Demand for a resource is a ___________ demand.

Accepted Answer

The answer of Demand for a resource is a ___________...

Question 14

A firm has 8 workers and each earns $100 a day.If the 8th worker has an MRP of $80,then the firm has _______ workers.

Accepted Answer

The answer of A firm has 8 workers and each...

Question 15

Which of the following offers the best example of derived demand?

Accepted Answer

A) An increase in the demand for movie tickets causes an increase in the demand for popcorn. 
B) An increase in demand for movie tickets causes an increase in the demand for movie theatre workers. 
C) A decline in the demand for cars causes an increase in the demand for bus rides. 
D) An increase in the demand for cars causes an increase in the demand for gasoline. 
A) An increase in the demand for movie tickets causes an increase in the demand for popcorn. 
B) An increase in demand for movie tickets causes an increase in the demand for movie theatre workers. 
C) A decline in the demand for cars causes an increase in the demand for bus rides. 
D) An increase in the demand for cars causes an increase in the demand for gasoline.

Question 16

The most important influence on the marginal revenue product schedule for computer software engineers would be a change in

Accepted Answer

A) their productivity. 
B) a change in the price of laser printers. 
C) a change in the demand for computer software. 
D) a change in the quantity of capital available to produce computer software. 
A) their productivity. 
B) a change in the price of laser printers. 
C) a change in the demand for computer software. 
D) a change in the quantity of capital available to produce computer software.

Question 17

The MRP schedule of the imperfect competitor declines _____ than that of the perfect competitor.

Accepted Answer

The answer of The MRP schedule of the imperfect competitor...

Question 18

How many workers would the firm hire if the wage rate were $700?

Accepted Answer

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

Question 19

How many workers would the firm hire if the wage rate were $200?

Accepted Answer

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

Question 20

The firm will rent more and more land until the rent and the ____ of the last unit of land hired are equal.

Accepted Answer

A) marginal physical product 
B) MRP 
C) output 
A) marginal physical product 
B) MRP 
C) output

Exam 26: Demand in the Factor Market

If the productivity of an assembly line worker rises from 6 rivets per minute to 9 rivets per minute,we can say that her productivity

In general,when the quantities of a complementary resource are increased,the productivity of the other resources

The concept of margin,or marginal

Suppose that the marginal revenue product of the fourth acre of land is $180 and the rent paid on that land is $200 an acre.We can say that

When the productivity of a resource declines,its ________ and its _________ also declines.

The demand for a resource rises as

As lumber becomes more expensive

Marginal Revenue Product with one unit of labor would be

Marginal Physical Units of Labor Product of Labor 1 5 2 8 3 10 4 8 5 5 6 2 7 -1 -When 2 units of labor are used,output is

If the price of a resource is raised,according to the substitution effect,_________;according to the output effect,________,thereby lowering the employment of all resources.

All of the following will decrease the demand for labor by firms in an industry except

Demand for a resource is a ___________ demand.

A firm has 8 workers and each earns $100 a day.If the 8th worker has an MRP of $80,then the firm has _______ workers.

Which of the following offers the best example of derived demand?

The most important influence on the marginal revenue product schedule for computer software engineers would be a change in

The MRP schedule of the imperfect competitor declines _____ than that of the perfect competitor.

How many workers would the firm hire if the wage rate were $700?

How many workers would the firm hire if the wage rate were $200?

The firm will rent more and more land until the rent and the ____ of the last unit of land hired are equal.

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

When the productivity of a resource declines,its and its _ also declines.

If the price of a resource is raised,according to the substitution effect,_;according to the output effect,,thereby lowering the employment of all resources.