Question 1

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 2

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 3

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 4

If a large increase in the wage rate leads to a net increase in the use of land 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 sizes of the substitution and output effects. 
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 sizes of the substitution and output effects.

Question 5

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 6

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 7

Which statement is true?

Accepted Answer

A) Productivity is input per unit of output. 
B) The MRP curve for the perfect competitor is steeper than the MRP curve for the imperfect competitor. 
C) The firm will hire workers until the wage rate and the Marginal Physical Product (MPP) of the last worker hired are equal. 
D) Relative to the U.S.economy, the Chinese economy is more labor intensive and less capital intensive. 
A) Productivity is input per unit of output. 
B) The MRP curve for the perfect competitor is steeper than the MRP curve for the imperfect competitor. 
C) The firm will hire workers until the wage rate and the Marginal Physical Product (MPP) of the last worker hired are equal. 
D) Relative to the U.S.economy, the Chinese economy is more labor intensive and less capital intensive.

Question 8

Use the following Table to answe the question : 
 
-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 9

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 10

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 11

Use the following Table to answer the question : 
 
-How many units of land would you hire?

Accepted Answer

The answer of Use the following Table to answer the...

Question 12

Suppose that land and capital are substitute resources. If rent rose, then the employment of capital would be _____ by the substitution effect and _____ by the output effect.

Accepted Answer

A) increased; increased 
B) decreased; decreased 
C) increased; decreased 
D) decreased; increased 
A) increased; increased 
B) decreased; decreased 
C) increased; decreased 
D) decreased; increased

Question 13

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 14

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 15

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 16

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 17

Workers in one country are more productive than workers in another country because

Accepted Answer

A) they have fewer complementary factors to work with. 
B) they have more complementary factors to work with. 
C) they are better motivated and paid. 
A) they have fewer complementary factors to work with. 
B) they have more complementary factors to work with. 
C) they are better motivated and paid.

Question 18

An increase in the price of crude oil, a basic input into the production of gasoline, is likely to

Accepted Answer

A) put downward pressure on the price of gasoline. 
B) put upward pressure on the price of gasoline. 
C) decrease the demand for gasoline. 
D) increase the quantity of gasoline demanded. 
A) put downward pressure on the price of gasoline. 
B) put upward pressure on the price of gasoline. 
C) decrease the demand for gasoline. 
D) increase the quantity of gasoline demanded.

Question 19

If the productivity of labor falls, its MPP will _____ and its MRP will ____.

Accepted Answer

A) rise; rise 
B) fall; fall 
C) rise; fall 
D) fall; rise 
A) rise; rise 
B) fall; fall 
C) rise; fall 
D) fall; rise

Question 20

Labor and land are substitutes. If rent goes up and the amount of labor used goes down, we can assume that the

Accepted Answer

A) output effect outweighed the substitution effect. 
B) the substitution effect outweighed the output effect. 
C) the substitution effect and the output effect canceled each other out. 
D) there is no way to determine the relative weights of the substitution effect and the output effect. 
A) output effect outweighed the substitution effect. 
B) the substitution effect outweighed the output effect. 
C) the substitution effect and the output effect canceled each other out. 
D) there is no way to determine the relative weights of the substitution effect and the output effect.

As lumber becomes more expensive

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

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

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

The demand for a resource rises as

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

Which statement is true?

Use the following Table to answe the question : -If the wage rate were $420, how many workers would be hired?

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

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

Use the following Table to answer the question : -How many units of land would you hire?

Suppose that land and capital are substitute resources. If rent rose, then the employment of capital would be _ by the substitution effect and _ by the output effect.

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 $700?

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.

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

Workers in one country are more productive than workers in another country because

An increase in the price of crude oil, a basic input into the production of gasoline, is likely to

If the productivity of labor falls, its MPP will _ and its MRP will .

Labor and land are substitutes. If rent goes up and the amount of labor used goes down, we can assume that the

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

As lumber becomes more expensive

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

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

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

The demand for a resource rises as

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

Which statement is true?

Use the following Table to answe the question : -If the wage rate were $420, how many workers would be hired?

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

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

Use the following Table to answer the question : -How many units of land would you hire?

Suppose that land and capital are substitute resources. If rent rose, then the employment of capital would be _____ by the substitution effect and _____ by the output effect.

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 $700?

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.

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

Workers in one country are more productive than workers in another country because

An increase in the price of crude oil, a basic input into the production of gasoline, is likely to

If the productivity of labor falls, its MPP will _____ and its MRP will ____.

Labor and land are substitutes. If rent goes up and the amount of labor used goes down, we can assume that the

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

Suppose that land and capital are substitute resources. If rent rose, then the employment of capital would be _ by the substitution effect and _ by the output effect.

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

If the productivity of labor falls, its MPP will _ and its MRP will .