Question 1

Use the following Table to answe the question :

-Marginal Revenue Product with six units of labor would be

Accepted Answer

A) $70. 
B) $60. 
C) $120. 
D) -$60.

Question 2

When we have an optimum resource mix for the firm,

Accepted Answer

A) the MRP of land = the price of land. 
B) the MPP of land = the price of land. 
C) All of the choices are true. 
D) Neither of the choices are true.

Question 3

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's productivity has risen.

Question 4

Use the following Table to answer the question :

-How many units of capital would you hire?

Accepted Answer

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

Question 5

If the output per acre of land triples, then the productivity of an acre of land

Accepted Answer

A) has been cut by two-thirds. 
B) has been cut by one-third. 
C) has stayed about the same. 
D) has increased. 
E) has tripled.

Question 6

Which statement is true?

Accepted Answer

A) Derived demand is the demand for resources. 
B) Resources are measured by units of outputs. 
C) Final demand is measured by units of inputs. 
D) None of the statements are true.

Question 7

As output rises, the MRP of an imperfect competitor will _____ that of a perfect competitor.

Accepted Answer

A) rise faster than 
B) fall faster than 
C) rise at the same rate as 
D) fall at the same rate as

Question 8

Derived demand is a demand for

Accepted Answer

A) final goods and services. 
B) products. 
C) resources. 
D) goods produced by perfect competitors. 
E) goods produced by imperfect competitors.

Question 9

Statement I: The substitution effect states that if the price of a resource rises, other resources will be substituted for it. Statement II: The concept of margin is central to economic analysis.

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.

Question 10

An increase in the price of steel will result in

Accepted Answer

A) a decrease in the prices of automobiles. 
B) an increase in the cost of labor to produce automobiles. 
C) an increase in the equilibrium quantity of automobiles. 
D) a decrease in the supply of automobiles.

Question 11

More complementary resources would tend to

Accepted Answer

A) raise the productivity and the marginal revenue product of labor. 
B) lower the productivity and the marginal revenue product of labor. 
C) raise the productivity of labor but lower its marginal revenue product. 
D) lower the productivity of labor but raise its marginal revenue product.

Question 12

The substitution effect and the output effect

Accepted Answer

A) always work in the same direction. 
B) sometimes work in the same direction. 
C) always work in the opposite direction. 
D) sometimes work in the opposite direction.

Question 13

A firm will hire a unit of input only if its

Accepted Answer

A) marginal physical product and marginal revenue product are positive. 
B) marginal physical product and marginal revenue product are negative. 
C) marginal physical product is positive and whose marginal revenue product is negative. 
D) marginal physical product is negative and whose marginal revenue product is positive.

Question 14

If the wage rate were $45, how many workers would be hired?

Accepted Answer

The answer of If the wage rate were $45, how...

Question 15

Which statement is true?

Accepted Answer

A) If the MRP of the last worker hired is higher than the wage rate, the firm has hired too few workers. 
B) The most important influence on a firm's demand for a factor of production is the demand for the final product. 
C) A firm will keep hiring more and more of a resource up to the point at which its MRP is equal to its price. 
D) All of the statements are true.

Question 16

A decrease in interest rates would

Accepted Answer

A) increase the demand for capital. 
B) decrease the demand for capital. 
C) increase the supply of capital. 
D) decrease the supply of capital. 
E) None of the choices are true.

Question 17

A widespread outbreak of Mad Cow disease, which leads to the destruction of thousands of cattle, is likely to

Accepted Answer

A) put downward pressure on the price of milk. 
B) put upward pressure on the price of milk. 
C) increase the supply of milk. 
D) increase the quantity of milk demanded.

Question 18

Is the firm a perfect competitor or an imperfect competitor?

Accepted Answer

The answer of Is the firm a perfect competitor or...

Question 19

Productivity is output per unit of __________.

Accepted Answer

The answer of Productivity is output per unit of __________....

Question 20

In general, as units of resource inputs rise, their marginal revenue product

Accepted Answer

A) rises. 
B) stays the same. 
C) declines.

Exam 14: Demand in the Factor Market

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

When we have an optimum resource mix for the firm,

A rise in the marginal revenue product schedule for labor

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

If the output per acre of land triples, then the productivity of an acre of land

Which statement is true?

As output rises, the MRP of an imperfect competitor will _____ that of a perfect competitor.

Derived demand is a demand for

Statement I: The substitution effect states that if the price of a resource rises, other resources will be substituted for it. Statement II: The concept of margin is central to economic analysis.

An increase in the price of steel will result in

More complementary resources would tend to

The substitution effect and the output effect

A firm will hire a unit of input only if its

If the wage rate were $45, how many workers would be hired?

Which statement is true?

A decrease in interest rates would

A widespread outbreak of Mad Cow disease, which leads to the destruction of thousands of cattle, is likely to

Is the firm a perfect competitor or an imperfect competitor?

Productivity is output per unit of __________.

In general, as units of resource inputs rise, their marginal revenue product