Question 1

Derived demand is a demand for

Accepted Answer

A) final goods and services. 
B) intermediate goods like steel and plastics. 
C) resources used only by monopolies. 
D) factors of production. 
A) final goods and services. 
B) intermediate goods like steel and plastics. 
C) resources used only by monopolies. 
D) factors of production.

Question 2

Which of the following will not cause the demand curve for labor to shift?

Accepted Answer

A) An increase in the wage rate. 
B) An increase in the price of the final product. 
C) An increase in the price of a substitute factor of production. 
D) A change in demand for the final product. 
E) An improvement in technology that produces higher labor productivity. 
A) An increase in the wage rate. 
B) An increase in the price of the final product. 
C) An increase in the price of a substitute factor of production. 
D) A change in demand for the final product. 
E) An improvement in technology that produces higher labor productivity.

Question 3

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

Question 4

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 5

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

Accepted Answer

A) $456. 
B) $700. 
C) $760. 
D) $800. 
E) $820. 
A) $456. 
B) $700. 
C) $760. 
D) $800. 
E) $820.

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

Fill in the above table.

Accepted Answer

The answer of  
Fill in the above table....

Question 8

If Max's output per hour were 50 in 1994 and 60 in 1995, how much would his marginal productivity be in 1995?

Accepted Answer

A) 10 
B) 50 
C) 55 
D) 60 
A) 10 
B) 50 
C) 55 
D) 60

Question 9

If land and labor are complementary resources and the price of capital goes up, the employment of labor ________.

Accepted Answer

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

Question 10

If a large decrease in the cost of capital leads to a firm increasing the labor it uses

Accepted Answer

A) then the output effect outweighs the substitution effect. 
B) the substitution effect outweighs the output effect. 
C) the substitution and output effects are equal. 
D) there is no way to determine the relative strengths of the output and substitution effects. 
A) then the output effect outweighs the substitution effect. 
B) the substitution effect outweighs the output effect. 
C) the substitution and output effects are equal. 
D) there is no way to determine the relative strengths of the output and substitution effects.

Question 11

As we use more and more units of a resource, the MRP

Accepted Answer

A) rises sharply. 
B) rises slowly. 
C) remains the same. 
D) declines. 
A) rises sharply. 
B) rises slowly. 
C) remains the same. 
D) declines.

Question 12

If the wage rate were $156, how many workers would be hired?

Accepted Answer

The answer of If the wage rate were $156, how...

Question 13

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 14

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 15

The optimum resource mix for a firm would be

Accepted Answer

A) wage rate/rent = MRP of labor/MRP of land. 
B) wage rate * rent = MRP of labor * MRP of land. 
C) MRP of labor/wage rate = MRP of land/rent. 
D) None of these choices are correct. 
A) wage rate/rent = MRP of labor/MRP of land. 
B) wage rate * rent = MRP of labor * MRP of land. 
C) MRP of labor/wage rate = MRP of land/rent. 
D) None of these choices are correct.

Question 16

If the MRP of an acre of land were $100 and its rent were $50,

Accepted Answer

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

Question 17

(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?

Accepted Answer

(a)
(b) The firm is an imperfe

Question 18

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 19

Suppose that the MRP of the sixth acre of land is $200 and the rent paid on that land is $200. 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 20

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...

Derived demand is a demand for

Which of the following will not cause the demand curve for labor to shift?

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?

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.

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

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

Fill in the above table.

If Max's output per hour were 50 in 1994 and 60 in 1995, how much would his marginal productivity be in 1995?

If land and labor are complementary resources and the price of capital goes up, the employment of labor ________.

If a large decrease in the cost of capital leads to a firm increasing the labor it uses

As we use more and more units of a resource, the MRP

If the wage rate were $156, how many workers would be hired?

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,

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

The optimum resource mix for a firm would be

If the MRP of an acre of land were $100 and its rent were $50,

How much of a resource a firm will purchase depends on

Suppose that the MRP of the sixth acre of land is $200 and the rent paid on that land is $200. We can say that

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

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

Derived demand is a demand for

Which of the following will not cause the demand curve for labor to shift?

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?

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.

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

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

Fill in the above table.

If Max's output per hour were 50 in 1994 and 60 in 1995, how much would his marginal productivity be in 1995?

If land and labor are complementary resources and the price of capital goes up, the employment of labor ________.

If a large decrease in the cost of capital leads to a firm increasing the labor it uses

As we use more and more units of a resource, the MRP

If the wage rate were $156, how many workers would be hired?

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,

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

The optimum resource mix for a firm would be

If the MRP of an acre of land were $100 and its rent were $50,

How much of a resource a firm will purchase depends on

Suppose that the MRP of the sixth acre of land is $200 and the rent paid on that land is $200. We can say that

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

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

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.