Question 1

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

Accepted Answer

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

Question 2

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.

Question 3

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.

Question 4

The primary difference between marginal revenue product for the perfect and imperfect competitor is

Accepted Answer

A)  the determination of the output price.
B)  the effective use of capital.
C)  the differences in calculation of total revenue.
D)  the concept of marginal analysis.

Question 5

Suppose that the marginal revenue product of the eighth worker hired is $12 an hour and the wage rate is $10 an hour.We can say that

Accepted Answer

A)  not enough labor is being hired.
B)  just enough labor is being hired.
C)  too much labor is being hired.

Question 6

The demand for an input is called a derived demand because

Accepted Answer

A)  employers of inputs,particularly labor,derive income from using inputs.
B)  employers derive satisfaction from giving employment to an input.
C)  the demand for output is derived from the demand for the inputs used to produce it.
D)  it arises from the demand for the output that the input is used to produce.

Question 7

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.

Question 8

If the wage rate were $25,how many workers would be hired?

Accepted Answer

The answer of If the wage rate were $25,how many...

Question 9

The substitution effect and the output effect work in the

Accepted Answer

A)  same direction some of the time.
B)  same direction all of the time.
C)  opposite direction some of the time.
D)  opposite direction all of the time.

Question 10

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 11

If a large decrease in rent leads to a firm cutting back on the labor it uses,

Accepted Answer

A)  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 of determining the relative strengths of the output and substitution effects.

Question 12

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.

Question 13

The additional revenue obtained by selling the output produced by one more unit of a resource is its

Accepted Answer

A)  marginal physical product.
B)  marginal revenue product.
C)  final demand.
D)  average revenue product.

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 many...

Question 15

If the prices of cars doubled,the MRP schedule for autoworkers would

Accepted Answer

A)  rise.
B)  fall.
C)  stay about the same.

Question 16

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

Accepted Answer

A)  rises faster under imperfect competition than under perfect competition.
B)  rises faster under perfect competition than under imperfect competition.
C)  falls faster under perfect competition than under imperfect competition.
D)  falls faster under imperfect competition than under perfect competition.

Question 17

If a firm acquires new machines that complement labor

Accepted Answer

A)  there will be no effect on the marginal product of labor curve.
B)  the amount of labor services hired will decrease.
C)  the marginal revenue product of labor curve will shift upward.
D)  the marginal revenue product of labor curve will shift downwarD.

Question 18

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.

Question 19

$$\begin{array} { c c c c c c } 
\begin{array} { c } 
\text { Units } \
\text { of } \
\text { Labor }
\end{array} & \text { Output } & \begin{array} { c } 
\text { Marginal } \
\text { Physical } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Price }
\end{array} & \begin{array} { r } 
\text { Revenue } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Parginal } \
\text { Pevenue } \
\text { Product }
\end{array} \
1 & 32 && \$ 20 \
2 & 63 && 19 \
3 & 92 && 18 \
4 & 117 && 17 \
5 & 136 && 16 \
6 & 146 && 15 \
7 & 151 && 14 \
8 & 152 && 13
\end{array}$$
-Fill in the above table.

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Question 20

A technological advance that increases the marginal product of labor will

Accepted Answer

A)  decrease the demand for labor.
B)  increase the supply for labor.
C)  decrease the supply for labor.
D)  increase the demand for labor.

Exam 26: Demand in the Factor Market

Correct Answer
verified

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

Correct Answer
verified

A technological advance that increases the marginal product of labor will

Correct Answer
verified

The additional revenue obtained by selling the output produced by one more unit of a resource is its

Correct Answer
verified

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

Correct Answer
verified

The demand for an input is called a derived demand because

Correct Answer
verified

If a large decrease in rent leads to a firm cutting back on the labor it uses,

Correct Answer
verified

The primary difference between marginal revenue product for the perfect and imperfect competitor is

Correct Answer
verified

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

Correct Answer
verified

If the wage rate were $25,how many workers would be hired?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

If the prices of cars doubled,the MRP schedule for autoworkers would

Correct Answer
verified

If a firm acquires new machines that complement labor

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

Suppose that the marginal revenue product of the eighth worker hired is $12 an hour and the wage rate is $10 an hour.We can say that

Correct Answer
verified

The substitution effect and the output effect work in the

Correct Answer
verified

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

Correct Answer
verified

The substitution effect and the output effect

Correct Answer
verified

Exam 26: Demand in the Factor Market

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A technological advance that increases the marginal product of labor will

Correct AnswerverifiedShow Answer

The additional revenue obtained by selling the output produced by one more unit of a resource is its

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The demand for an input is called a derived demand because

Correct AnswerverifiedShow Answer

If a large decrease in rent leads to a firm cutting back on the labor it uses,

Correct AnswerverifiedShow Answer

The primary difference between marginal revenue product for the perfect and imperfect competitor is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the wage rate were $25,how many workers would be hired?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the prices of cars doubled,the MRP schedule for autoworkers would

Correct AnswerverifiedShow Answer

If a firm acquires new machines that complement labor

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Suppose that the marginal revenue product of the eighth worker hired is $12 an hour and the wage rate is $10 an hour.We can say that

Correct AnswerverifiedShow Answer

The substitution effect and the output effect work in the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The substitution effect and the output effect

Correct AnswerverifiedShow Answer

Correct Answer
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