Question 1

Which of the following lowers the current price of an nonrenewable natural resource?

Accepted Answer

A)  an increase in the interest rate 
B)  a decrease in the stock of the resource 
C)  an increase in the marginal revenue product of the resource 
D)  an increase in the price of a substitute resource 
A)  an increase in the interest rate 
B)  a decrease in the stock of the resource 
C)  an increase in the marginal revenue product of the resource 
D)  an increase in the price of a substitute resource

Question 2

The value of marginal product of labor is the change in

Accepted Answer

A)  profit from hiring one more worker. 
B)  output from hiring one more worker. 
C)  total revenue from hiring one more worker. 
D)  profit from producing one more unit of output. 
A)  profit from hiring one more worker. 
B)  output from hiring one more worker. 
C)  total revenue from hiring one more worker. 
D)  profit from producing one more unit of output.

Question 3

If the interest rate is 10 percent, the present value of $400 to be received two years from today is about

Accepted Answer

A)  $331. 
B)  $484. 
C)  $364. 
D)  $440. 
A)  $331. 
B)  $484. 
C)  $364. 
D)  $440.

Question 4

-The above figure shows the market for labor. The employer is a monopsony. The firm will NOT hire 800 hours of labor because at that point

Accepted Answer

A) VMP > MCL. B) VMP = MCL. C) VMP < MCL. D) VMP = W. A) VMP > MCL. B) VMP = MCL. C) VMP < MCL. D) VMP = W.

Question 5

According to the Hotelling Principle, the price of a nonrenewable resource is expected to

Accepted Answer

A)  rise at a rate higher than the interest rate. 
B)  rise at a rate lower than the interest rate. 
C)  rise at a rate equal to the interest rate. 
D)  fall at a rate equal to the interest rate. 
A)  rise at a rate higher than the interest rate. 
B)  rise at a rate lower than the interest rate. 
C)  rise at a rate equal to the interest rate. 
D)  fall at a rate equal to the interest rate.

Question 6

With respect to the labor supply curve, the income effect

Accepted Answer

A)  reinforces the substitution effect. 
B)  lowers the opportunity cost of labor. 
C)  raises the opportunity cost of labor. 
D)  influences a person to work less as the wage rate increases. 
A)  reinforces the substitution effect. 
B)  lowers the opportunity cost of labor. 
C)  raises the opportunity cost of labor. 
D)  influences a person to work less as the wage rate increases.

Question 7

-Consider the monopsony in the above figure. The monopsony will pay a hourly wage rate equal to

Accepted Answer

A)  $10. 
B)  $15. 
C)  $20. 
D)  a wage between $10 and $20. 
A)  $10. 
B)  $15. 
C)  $20. 
D)  a wage between $10 and $20.

Question 8

-Anthony's Accountants is the only employer of accountants in the island of Fairisle. The table gives the demand and supply of accountants on Fairisle. The marginal cost of hiring a sixth accountant is ________ an hour.

Accepted Answer

A)  $20 
B)  $15 
C)  $25 
D)  $45 
A)  $20 
B)  $15 
C)  $25 
D)  $45

Question 9

-City-Mart is the only employer of sales clerks in Panburg. In the figure above S is the labor supply curve faced by City-Mart, VMP is City-Mart's value of marginal product curve, and MCL is its marginal cost of labor curve. City-Mart sales clerks' wage is ________ it would be if the labor market were competitive.

Accepted Answer

A)  $3 per hour higher than 
B)  $3 per hour lower than 
C)  $6 per hour lower than 
D)  the same as 
A)  $3 per hour higher than 
B)  $3 per hour lower than 
C)  $6 per hour lower than 
D)  the same as

Question 10

If the interest rate is 4 percent, the present value of $10,000 to be received one year from today is about

Accepted Answer

A)  $9,246. 
B)  $9,615. 
C)  $10,816. 
D)  $10,400. 
A)  $9,246. 
B)  $9,615. 
C)  $10,816. 
D)  $10,400.

Question 11

The monopsony will hire the amount of labor so that the

Accepted Answer

A)  demand for labor equals supply for labor. 
B)  value of marginal product of labor equals the wage rate. 
C)  value of marginal product of labor equals the marginal cost of labor. 
D)  supply for labor equals the wage rate. 
A)  demand for labor equals supply for labor. 
B)  value of marginal product of labor equals the wage rate. 
C)  value of marginal product of labor equals the marginal cost of labor. 
D)  supply for labor equals the wage rate.

Question 12

The price of an nonrenewable resource is expected to rise at a rate equal to the

Accepted Answer

A)  rate of supply. 
B)  rate of population growth. 
C)  rate of demand. 
D)  interest rate. 
A)  rate of supply. 
B)  rate of population growth. 
C)  rate of demand. 
D)  interest rate.

Question 13

-Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the total revenue earned by selling 180 gallons of gas?

Accepted Answer

A)  $240 
B)  $540 
C)  $840 
D)  $3,300 
A)  $240 
B)  $540 
C)  $840 
D)  $3,300

Question 14

A minimum wage might increase employment by a monopsony if it makes the supply of labor curve to that firm

Accepted Answer

A)  steeper, that is, makes supply more elastic. 
B)  steeper, that is, makes supply less elastic. 
C)  flatter, that is, makes supply more elastic. 
D)  flatter, that is, makes supply less elastic. 
A)  steeper, that is, makes supply more elastic. 
B)  steeper, that is, makes supply less elastic. 
C)  flatter, that is, makes supply more elastic. 
D)  flatter, that is, makes supply less elastic.

Question 15

Which of the following is a nonrenewable resource?

Accepted Answer

A)  residential land 
B)  sunshine 
C)  a machine tool 
D)  oil 
A)  residential land 
B)  sunshine 
C)  a machine tool 
D)  oil

Question 16

-The table above shows the total product schedule for Shines Car Wash. The market for car washes is perfectly competitive and car washes sell for $5 each. The labor market is competitive and the wage rate is $50 per day. What is the value of marginal product for each worker? How many workers does the firm hire to maximize profit?

Accepted Answer

@#IMG-DLM& The value of marginal product is the ma

Question 17

-Pointy Stone State Park is the sole employer of naturalists in the area. The table above provides information about the supply of naturalists and the value of marginal product of labor for naturalists. How many naturalists will Pointy Stone State Park hire?

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
A)  2 
B)  3 
C)  4 
D)  5

Question 18

Why does the labor supply curve eventually bend backwards?

Accepted Answer

The wage rate represents the opportunity

Question 19

The marginal product of labor equals the value of marginal product of labor multiplied by the price of the output produced.

Accepted Answer

A) True 
 B)False

Question 20

If the interest rate is 7.5 percent, the present value of $500 to be received three years from today is $477.50.

Accepted Answer

A) True 
 B)False

Which of the following lowers the current price of an nonrenewable natural resource?

The value of marginal product of labor is the change in

If the interest rate is 10 percent, the present value of $400 to be received two years from today is about

-The above figure shows the market for labor. The employer is a monopsony. The firm will NOT hire 800 hours of labor because at that point

According to the Hotelling Principle, the price of a nonrenewable resource is expected to

With respect to the labor supply curve, the income effect

-Consider the monopsony in the above figure. The monopsony will pay a hourly wage rate equal to

-Anthony's Accountants is the only employer of accountants in the island of Fairisle. The table gives the demand and supply of accountants on Fairisle. The marginal cost of hiring a sixth accountant is ________ an hour.

If the interest rate is 4 percent, the present value of $10,000 to be received one year from today is about

The monopsony will hire the amount of labor so that the

The price of an nonrenewable resource is expected to rise at a rate equal to the

-Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the total revenue earned by selling 180 gallons of gas?

A minimum wage might increase employment by a monopsony if it makes the supply of labor curve to that firm

Which of the following is a nonrenewable resource?

-Pointy Stone State Park is the sole employer of naturalists in the area. The table above provides information about the supply of naturalists and the value of marginal product of labor for naturalists. How many naturalists will Pointy Stone State Park hire?

Why does the labor supply curve eventually bend backwards?

The marginal product of labor equals the value of marginal product of labor multiplied by the price of the output produced.

If the interest rate is 7.5 percent, the present value of $500 to be received three years from today is $477.50.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Economic Inequality

Uncertainty and Information

Filters

Exam 18: Markets for Factors of Production

Which of the following lowers the current price of an nonrenewable natural resource?

The value of marginal product of labor is the change in

If the interest rate is 10 percent, the present value of $400 to be received two years from today is about

-The above figure shows the market for labor. The employer is a monopsony. The firm will NOT hire 800 hours of labor because at that point

According to the Hotelling Principle, the price of a nonrenewable resource is expected to

With respect to the labor supply curve, the income effect

-Consider the monopsony in the above figure. The monopsony will pay a hourly wage rate equal to

-Anthony's Accountants is the only employer of accountants in the island of Fairisle. The table gives the demand and supply of accountants on Fairisle. The marginal cost of hiring a sixth accountant is ________ an hour.

If the interest rate is 4 percent, the present value of $10,000 to be received one year from today is about

The monopsony will hire the amount of labor so that the

The price of an nonrenewable resource is expected to rise at a rate equal to the

-Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the total revenue earned by selling 180 gallons of gas?

A minimum wage might increase employment by a monopsony if it makes the supply of labor curve to that firm

Which of the following is a nonrenewable resource?

-Pointy Stone State Park is the sole employer of naturalists in the area. The table above provides information about the supply of naturalists and the value of marginal product of labor for naturalists. How many naturalists will Pointy Stone State Park hire?

Why does the labor supply curve eventually bend backwards?

The marginal product of labor equals the value of marginal product of labor multiplied by the price of the output produced.

If the interest rate is 7.5 percent, the present value of $500 to be received three years from today is $477.50.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Economic Inequality

Uncertainty and Information

Filters