Question 1

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

Question 2

The figure above shows a firm's VMP curve.
-Suppose that the price of the product doubles and the marginal product of the workers does not change.As a result,the value of marginal product of the second worker

Accepted Answer

A)  remains $12.. 
B)  becomes $6. 
C)  becomes $24. 
D)  becomes $30. 
E)  More information about the supply of labor is needed to answer the question. 
A)  remains $12.. 
B)  becomes $6. 
C)  becomes $24. 
D)  becomes $30. 
E)  More information about the supply of labor is needed to answer the question.

Question 3

Which of the following is   a method used by union to increase their members' wages?

Accepted Answer

A)  Limit the supply of non-union workers. 
B)  Increase the demand for union workers. 
C)  Support minimum wage increases. 
D)  Increase union members' productivity. 
E)  None of the above because they are all methods unions use to increase their members' wages. 
A)  Limit the supply of non-union workers. 
B)  Increase the demand for union workers. 
C)  Support minimum wage increases. 
D)  Increase union members' productivity. 
E)  None of the above because they are all methods unions use to increase their members' wages.

Question 4

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct,the supply of labor in Russia will

Accepted Answer

A)  increase. 
B)  not change. 
C)  decrease. 
D)  become less elastic. 
E)  become more elastic. 
A)  increase. 
B)  not change. 
C)  decrease. 
D)  become less elastic. 
E)  become more elastic.

Question 5

If the quantity of capital supplied exceeds the quantity of capital demanded,what takes place?

Accepted Answer

If the quantity of capital supplied exce

Question 6

Suppose Mongo runs a glue factory in Knuckle,North Dakota.Mongo wants to fire his cousin Beevo for not working very hard at making glue.If firing Beevo would save Mongo $6.11 per hour in wages and the value of Beevo's marginal product equals $7.29 per hour,to maximize his profit,Mongo should

Accepted Answer

A)  fire Beevo. 
B)  keep Beevo employed. 
C)  add another worker, Teevo, Beevo's sister, whose value of the marginal product would be $4.83 per hour and whose wage would be $6.11 per hour. 
D)  increase the wage he pays Beevo to $7.29 per hour. 
E)  There is not enough information given to determine what Mongo should do. 
A)  fire Beevo. 
B)  keep Beevo employed. 
C)  add another worker, Teevo, Beevo's sister, whose value of the marginal product would be $4.83 per hour and whose wage would be $6.11 per hour. 
D)  increase the wage he pays Beevo to $7.29 per hour. 
E)  There is not enough information given to determine what Mongo should do.

Question 7

The demand for labor curve of nurses shifts rightward if the

Accepted Answer

A)  value of marginal product of nurses increases. 
B)  wage rate paid to nurses rises. 
C)  supply of labor curve for nurses shifts leftward. 
D)  wage rate paid to nurses falls. 
E)  supply of labor curve for nurses shifts rightward. 
A)  value of marginal product of nurses increases. 
B)  wage rate paid to nurses rises. 
C)  supply of labor curve for nurses shifts leftward. 
D)  wage rate paid to nurses falls. 
E)  supply of labor curve for nurses shifts rightward.

Question 8

Which of the following is a renewable resource?
i.a forest of pine trees grown by Georgia-Pacific
ii.oil reserves in Saudi Arabia
iii.the Everglades

Accepted Answer

A)  i and ii 
B)  ii and iii 
C)  i and iii 
D)  i, ii, and iii 
E)  i only 
A)  i and ii 
B)  ii and iii 
C)  i and iii 
D)  i, ii, and iii 
E)  i only

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

The figure above shows a firm's VMP curve. -Suppose that the price of the product doubles and the marginal product of the workers does not change.As a result,the value of marginal product of the second worker

Which of the following is a method used by union to increase their members' wages?

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct,the supply of labor in Russia will

If the quantity of capital supplied exceeds the quantity of capital demanded,what takes place?

Suppose Mongo runs a glue factory in Knuckle,North Dakota.Mongo wants to fire his cousin Beevo for not working very hard at making glue.If firing Beevo would save Mongo $6.11 per hour in wages and the value of Beevo's marginal product equals $7.29 per hour,to maximize his profit,Mongo should

The demand for labor curve of nurses shifts rightward if the

Which of the following is a renewable resource? i.a forest of pine trees grown by Georgia-Pacific ii.oil reserves in Saudi Arabia iii.the Everglades

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Economic Inequality

Filters

Exam 19: Markets for Factors of Production

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

The figure above shows a firm's VMP curve. -Suppose that the price of the product doubles and the marginal product of the workers does not change.As a result,the value of marginal product of the second worker

Which of the following is a method used by union to increase their members' wages?

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct,the supply of labor in Russia will

If the quantity of capital supplied exceeds the quantity of capital demanded,what takes place?

Suppose Mongo runs a glue factory in Knuckle,North Dakota.Mongo wants to fire his cousin Beevo for not working very hard at making glue.If firing Beevo would save Mongo $6.11 per hour in wages and the value of Beevo's marginal product equals $7.29 per hour,to maximize his profit,Mongo should

The demand for labor curve of nurses shifts rightward if the

Which of the following is a renewable resource? i.a forest of pine trees grown by Georgia-Pacific ii.oil reserves in Saudi Arabia iii.the Everglades

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Economic Inequality

Filters