Exam 12: The Supply of and Demand for Productive Resources

Relative to a mobile factor of production, economic theory suggests that the price elasticity of supply for a highly immobile factor of production (for example, land) will be

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Suppose that workers immigrate to Minnesota from Canada. Which of the following correctly describes what would happen in the market for labor in Minnesota?

Compared to the short-run demand, the long-run demand for a resource is

A profit-maximizing farmer will apply additional units of fertilizer until the marginal revenue product (MRP) of fertilizer is half the MRP of skilled labor when a unit of fertilizer

There is an Italian soccer player who makes more than $10 million a year. Why?

A firm's demand curve for labor shifts when the

Which of the following is the most accurate definition of a worker's "marginal revenue product"?

Consider the labor market for nurses, which initially is in equilibrium. Suppose the output price for nursing services increases. Holding all else equal, what effect will this have on the labor market for nurses?

The demand for most products is likely to be

The demand for a resource depends largely on the

If unskilled labor is relatively plentiful and cheap in many foreign countries, then as the United States expands its trade with these foreign countries, the domestic demand for

Why is it more expensive to acquire a new house in an urban area than in a rural area if the costs of labor and building materials are the same?

The marginal revenue product of a resource is best described as the

An increase in the demand for a product will cause

Which of the following is the best example of an investment in human capital?

If skilled labor costs three times as much as unskilled labor, a profit-maximizing firm will vary the quantity of each type of labor used until the

Assume that skilled labor costs twice as much as unskilled labor, a profit-maximizing firm will

Which of the following is the best example of an investment in human capital?

If a college education did not increase worker productivity,