Question 1

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 2

When the wage rate falls, if the substitution effect outweighs the output effect, the use of machinery will

Accepted Answer

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

Question 3

Use the following Table to answe the question : 
 
-If the wage rate were $50, 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 4

An addition of a complementary resource would ______ the marginal revenue product of any given resource.

Accepted Answer

A) raise 
B) lower 
C) have no effect upon 
A) raise 
B) lower 
C) have no effect upon

Question 5

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 6

If sewing machines are considered to be a complement to labor in the production of garments, then an increase in the price of sewing machines will cause

Accepted Answer

A) the demand curve for labor to shift to the right. 
B) the demand curve for labor to shift to the left. 
C) a movement along the demand curve for labor. 
D) nothing to happen to the demand curve for labor. 
A) the demand curve for labor to shift to the right. 
B) the demand curve for labor to shift to the left. 
C) a movement along the demand curve for labor. 
D) nothing to happen to the demand curve for labor.

Question 7

The output effect states that if the price of a resource _________, output of the final product will _________.

Accepted Answer

A) rises; decline 
B) rises; increase 
C) falls; decline 
D) None of these choices are correct. 
A) rises; decline 
B) rises; increase 
C) falls; decline 
D) None of these choices are correct.

Question 8

Use the following Table to answer the question :
 
-If this firm were a perfect competitor selling its entire output at a price of $10, the marginal revenue product of the fourth unit of output would be

Accepted Answer

A) $0. 
B) $10. 
C) $15. 
D) $20. 
E) $150. 
A) $0. 
B) $10. 
C) $15. 
D) $20. 
E) $150.

Question 9

Use the following Table to answe the question : 
 
-If the wage rate were $30, how many workers would be hired?

Accepted Answer

A) 3 
B) 4 
C) 5 
D) 6 
E) 7 
A) 3 
B) 4 
C) 5 
D) 6 
E) 7

Question 10

In 1973 the Russian wheat crop failed and the Soviet Union made massive purchases of American wheat. Which statement is a result of this action?

Accepted Answer

A) The demand for farm labor and farmland was driven down in the United States. 
B) There was no effect on the demand for farm labor and farmland in the United States. 
C) The demand for farm labor and farmland was driven up in the United States. 
D) None of these statements are true. 
A) The demand for farm labor and farmland was driven down in the United States. 
B) There was no effect on the demand for farm labor and farmland in the United States. 
C) The demand for farm labor and farmland was driven up in the United States. 
D) None of these statements are true.

Question 11

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 12

A rise in the marginal revenue product schedule for labor

Accepted Answer

A) means that the marginal physical product of labor rose. 
B) means that more labor is demanded by the firm. 
C) means that the demand for the final product has fallen. 
D) means that labor productivity has risen. 
A) means that the marginal physical product of labor rose. 
B) means that more labor is demanded by the firm. 
C) means that the demand for the final product has fallen. 
D) means that labor productivity has risen.

Question 13

Which statement is false?

Accepted Answer

A) The concept of margin, or marginal is central to economic analysis. 
B) Productivity is measured by output per unit of input. 
C) MRP declines as more and more units of a factor are used. 
D) None of the statements are false. 
A) The concept of margin, or marginal is central to economic analysis. 
B) Productivity is measured by output per unit of input. 
C) MRP declines as more and more units of a factor are used. 
D) None of the statements are false.

Question 14

Use the following Table to answe the question : 
 
-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 15

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

Accepted Answer

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

Question 16

A fall 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 17

If the wage rate were $335, how many workers would be hired?

Accepted Answer

The answer of If the wage rate were $335, how...

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

When the wage rate falls, if the substitution effect outweighs the output effect, the use of machinery will

Use the following Table to answe the question : -If the wage rate were $50, how many workers would be hired?

An addition of a complementary resource would ______ the marginal revenue product of any given resource.

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

If sewing machines are considered to be a complement to labor in the production of garments, then an increase in the price of sewing machines will cause

The output effect states that if the price of a resource _, output of the final product will _.

Use the following Table to answer the question : -If this firm were a perfect competitor selling its entire output at a price of $10, the marginal revenue product of the fourth unit of output would be

Use the following Table to answe the question : -If the wage rate were $30, how many workers would be hired?

In 1973 the Russian wheat crop failed and the Soviet Union made massive purchases of American wheat. Which statement is a result of this action?

The marginal revenue product schedule is a

A rise in the marginal revenue product schedule for labor

Which statement is false?

Use the following Table to answe the question : -Marginal Revenue Product with three units of labor would be

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

A fall in the wage rate would lead to a movement

If the wage rate were $335, how many workers would be hired?

A Brief Economic History of the United States

Resource Utilization

The Mixed Economy

Supply and Demand

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

Exam 14: Demand in the Factor Market

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

When the wage rate falls, if the substitution effect outweighs the output effect, the use of machinery will

Use the following Table to answe the question : -If the wage rate were $50, how many workers would be hired?

An addition of a complementary resource would ______ the marginal revenue product of any given resource.

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

If sewing machines are considered to be a complement to labor in the production of garments, then an increase in the price of sewing machines will cause

The output effect states that if the price of a resource _________, output of the final product will _________.

Use the following Table to answer the question : -If this firm were a perfect competitor selling its entire output at a price of $10, the marginal revenue product of the fourth unit of output would be

Use the following Table to answe the question : -If the wage rate were $30, how many workers would be hired?

In 1973 the Russian wheat crop failed and the Soviet Union made massive purchases of American wheat. Which statement is a result of this action?

The marginal revenue product schedule is a

A rise in the marginal revenue product schedule for labor

Which statement is false?

Use the following Table to answe the question : -Marginal Revenue Product with three units of labor would be

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

A fall in the wage rate would lead to a movement

If the wage rate were $335, how many workers would be hired?

A Brief Economic History of the United States

Resource Utilization

The Mixed Economy

Supply and Demand

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

The output effect states that if the price of a resource _, output of the final product will _.