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

The optimal level of resource use comes when

If the price of cotton increases

Figure 12-3 -Refer to Figure 12-3. This figure depicts labor demand and supply in a nonunionized labor market. The original equilibrium is at point A. If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20, then there will be an excess

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

If the price of crude oil fell significantly, which of the following would be most likely to happen?

Figure 12-1 -If one short-run supply curve in Figure 12-1 was for truck drivers and the other was for nuclear physicists (also short-run), which one would probably be the supply curve for physicists?

If skilled labor is three times the cost of unskilled labor, a profit-maximizing firm will vary the quantity of each type of labor until the

Which one of the following labor resources will likely have the most inelastic supply schedule in the short run?

Other things constant, if the demand for a final product is quite elastic, the demand for a resource used to produce the product will tend to be

Figure 12-1 -If Figure 12-1 indicated the short-run and long-run supply curves for a resource, which of the following would probably be the long-run supply curve of the resource?

A technological advance that increases labor productivity will

Why is a college graduate more likely to get a job in management than is someone with only a high school diploma, even when the job has nothing to do with a specific type of education?

The following table indicates the reductions in total losses due to theft if a jewelry store hires additional security guards. If the security guards can be hired for $65 per day, how many guards should the shop hire?

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

Marginal revenue product is the

Suppose a new oxygen-enrichment process will cut in half the energy required to smelt copper. The firm selling licenses for this patented process will experience a greater demand for its product when

Which of the following most clearly illustrates the concept of "derived demand"?

Which of the following would tend to decrease the demand for coal miners?

In a price-taker industry, the marginal revenue derived from the sale of an additional unit of the product is equal to the market price of the product. In these circumstances,