Question 1

If Kelly's output per hour in 1995 were 100 and her output per hour in 1996 were 105, how much would her productivity be in 1996?

Accepted Answer

A) 5 
B) 100 
C) 102.5 
D) 105 
E) Impossible to calculate 
A) 5 
B) 100 
C) 102.5 
D) 105 
E) Impossible to calculate

Question 2

Demand for a resource is a ___________ demand.

Accepted Answer

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

Question 3

Increases in the productivity of labor tend to

Accepted Answer

A) increase the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor. 
B) decrease the marginal revenue product of labor and increase the wages employers are willing to pay for any given amount of labor. 
C) increase the marginal revenue product of labor but have no effect on the wages employers are willing to pay for any given amount of labor. 
D) decrease the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor. 
A) increase the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor. 
B) decrease the marginal revenue product of labor and increase the wages employers are willing to pay for any given amount of labor. 
C) increase the marginal revenue product of labor but have no effect on the wages employers are willing to pay for any given amount of labor. 
D) decrease the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor.

Question 4

You operate a shop that repairs TVs and VCRs. The going wage rate in a competitive market for skilled repair people is $18 per hour. Given the current demand for your services, the marginal revenue product of your repair people is $28 per hour.
-You should

Accepted Answer

A) increase the number of repair people working for you. 
B) decrease the number of repair people working for you. 
C) make no change in the number of people you use. 
D) lay off all your employees and do all the work yourself. 
A) increase the number of repair people working for you. 
B) decrease the number of repair people working for you. 
C) make no change in the number of people you use. 
D) lay off all your employees and do all the work yourself.

Question 5

Use the following Table to answe the question : 
 
-This producer

Accepted Answer

A) is a perfect competitor. 
B) is an imperfect competitor. 
C) could be either a perfect or imperfect competitor. 
A) is a perfect competitor. 
B) is an imperfect competitor. 
C) could be either a perfect or imperfect competitor.

Question 6

If the wage rate rises and there is a net decrease in the use of capital by a firm

Accepted Answer

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

Question 7

If the productivity of capital rises, 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 8

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 9

Which statement is true?

Accepted Answer

A) A change in derived demand brings about a change in final demand. 
B) A change in final demand brings about a change in derived demand. 
C) A rise in final demand is associated with a decline in derived demand. 
D) None of these statements are true. 
A) A change in derived demand brings about a change in final demand. 
B) A change in final demand brings about a change in derived demand. 
C) A rise in final demand is associated with a decline in derived demand. 
D) None of these statements are true.

Question 10

If the price that a perfect competitor receives for her final product rises by 50%, the firm's MRP schedule will shift to the _________.

Accepted Answer

The answer of If the price that a perfect competitor...

Question 11

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

Question 12

When the price of a resource _________, the demand for a complementary resource ___________; when price of a resource _________, the demand for a complementary resource _________.

Accepted Answer

A) rises, rises; falls, falls 
B) rises, falls; falls, falls 
C) rises, falls; falls, rises 
D) rises, rises; falls, rises 
A) rises, rises; falls, falls 
B) rises, falls; falls, falls 
C) rises, falls; falls, rises 
D) rises, rises; falls, rises

Question 13

Use the following Table to answe the question : 
 
-This producer

Accepted Answer

A) is a perfect competitor. 
B) is an imperfect competitor. 
C) could be either a perfect or imperfect competitor. 
A) is a perfect competitor. 
B) is an imperfect competitor. 
C) could be either a perfect or imperfect competitor.

Question 14

If Marco's output per hour in 2000 was 200 and his output per hour in 2004 was 220, how much would his productivity be in 2004?

Accepted Answer

A) 20 
B) 200 
C) 205 
D) 220 
A) 20 
B) 200 
C) 205 
D) 220

Question 15

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

Accepted Answer

A) $100. 
B) $200. 
C) $340. 
D) $600. 
A) $100. 
B) $200. 
C) $340. 
D) $600.

Question 16

An auto service station has four mechanics. If the marginal revenue product of the fourth worker is $375 per day and the mechanics are paid $150 per day, the firm

Accepted Answer

A) can make a greater profit by laying off some of the mechanics. 
B) can make a higher profit by hiring more mechanics. 
C) is maximizing profits. 
D) will reduce its profits if it hires more mechanics. 
A) can make a greater profit by laying off some of the mechanics. 
B) can make a higher profit by hiring more mechanics. 
C) is maximizing profits. 
D) will reduce its profits if it hires more mechanics.

Question 17

Use the following Table to answe the question : 
 
-If the wage rate were $250, how many workers would be hired?

Accepted Answer

A) 3 
B) 4 
C) 5 
D) 6 
E) 0 
A) 3 
B) 4 
C) 5 
D) 6 
E) 0

Question 18

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

Accepted Answer

A perfect competitor

Question 19

A firm will continue hiring labor as long as the MRP of labor _______ the market wage rate.

Accepted Answer

A) is equal to 
B) determines 
C) is less than 
D) is greater than 
A) is equal to 
B) determines 
C) is less than 
D) is greater than

Question 20

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.

If Kelly's output per hour in 1995 were 100 and her output per hour in 1996 were 105, how much would her productivity be in 1996?

Demand for a resource is a ___________ demand.

Increases in the productivity of labor tend to

You operate a shop that repairs TVs and VCRs. The going wage rate in a competitive market for skilled repair people is $18 per hour. Given the current demand for your services, the marginal revenue product of your repair people is $28 per hour. -You should

Use the following Table to answe the question : -This producer

If the wage rate rises and there is a net decrease in the use of capital by a firm

If the productivity of capital rises, its MPP will _ and its MRP will .

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

Which statement is true?

If the price that a perfect competitor receives for her final product rises by 50%, the firm's MRP schedule will shift to the _________.

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

When the price of a resource ___, the demand for a complementary resource _; when price of a resource _, the demand for a complementary resource _____.

Use the following Table to answe the question : -This producer

If Marco's output per hour in 2000 was 200 and his output per hour in 2004 was 220, how much would his productivity be in 2004?

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

An auto service station has four mechanics. If the marginal revenue product of the fourth worker is $375 per day and the mechanics are paid $150 per day, the firm

Use the following Table to answe the question : -If the wage rate were $250, how many workers would be hired?

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

A firm will continue hiring labor as long as the MRP of labor _______ the market wage rate.

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

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 Kelly's output per hour in 1995 were 100 and her output per hour in 1996 were 105, how much would her productivity be in 1996?

Demand for a resource is a ___________ demand.

Increases in the productivity of labor tend to

You operate a shop that repairs TVs and VCRs. The going wage rate in a competitive market for skilled repair people is $18 per hour. Given the current demand for your services, the marginal revenue product of your repair people is $28 per hour. -You should

Use the following Table to answe the question : -This producer

If the wage rate rises and there is a net decrease in the use of capital by a firm

If the productivity of capital rises, its MPP will _____ and its MRP will ____.

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

Which statement is true?

If the price that a perfect competitor receives for her final product rises by 50%, the firm's MRP schedule will shift to the _________.

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

When the price of a resource _________, the demand for a complementary resource ___________; when price of a resource _________, the demand for a complementary resource _________.

Use the following Table to answe the question : -This producer

If Marco's output per hour in 2000 was 200 and his output per hour in 2004 was 220, how much would his productivity be in 2004?

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

An auto service station has four mechanics. If the marginal revenue product of the fourth worker is $375 per day and the mechanics are paid $150 per day, the firm

Use the following Table to answe the question : -If the wage rate were $250, how many workers would be hired?

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

A firm will continue hiring labor as long as the MRP of labor _______ the market wage rate.

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

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 productivity of capital rises, its MPP will _ and its MRP will .

When the price of a resource ___, the demand for a complementary resource _; when price of a resource _, the demand for a complementary resource _____.