Question 1

As a factor of production, any of the gifts of nature are called

Accepted Answer

A) land. 
B) labor. 
C) capital. 
D) entrepreneurial ability. 
E) physical capital. 
A) land. 
B) labor. 
C) capital. 
D) entrepreneurial ability. 
E) physical capital.

Question 2

Which of the following factors have a derived demand?
I∙labor
Ii∙capital
Iii∙raw materials

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

Question 3

If the marginal product of labor increases, the firm's demand for labor curve

Accepted Answer

A) does not shift, and there is no movement along it. 
B) shifts leftward. 
C) shifts rightward. 
D) does not shift but there is a movement along it. 
E) might shift leftward or rightward depending on whether the demand for the firm's product is elastic or inelastic. 
A) does not shift, and there is no movement along it. 
B) shifts leftward. 
C) shifts rightward. 
D) does not shift but there is a movement along it. 
E) might shift leftward or rightward depending on whether the demand for the firm's product is elastic or inelastic.

Question 4

The wage paid to labor is

Accepted Answer

A) a factor output. 
B) a factor price. 
C) a factor input. 
D) an input of the workforce. 
E) part of the firm's normal profit. 
A) a factor output. 
B) a factor price. 
C) a factor input. 
D) an input of the workforce. 
E) part of the firm's normal profit.

Question 5

-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 6

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

Accepted Answer

A) fall slowly over time. 
B) fall at a rate equal to the interest rate. 
C) fluctuate randomly. 
D) rise at a rate equal to the interest rate. 
E) remain constant over time. 
A) fall slowly over time. 
B) fall at a rate equal to the interest rate. 
C) fluctuate randomly. 
D) rise at a rate equal to the interest rate. 
E) remain constant over time.

Question 7

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

Accepted Answer

A) an increase in technology 
B) a decrease in technology 
C) a decrease in the number of women in the work force 
D) an increase in the adult population 
E) an increase in the wage rate 
A) an increase in technology 
B) a decrease in technology 
C) a decrease in the number of women in the work force 
D) an increase in the adult population 
E) an increase in the wage rate

Question 8

The rule for employing a profit-maximizing amount of labor is to continue to hire additional workers until the additional worker's value of marginal product is

Accepted Answer

A) less than the wage rate. 
B) equal to the wage rate. 
C) greater than 1. 
D) less than the price of the product. 
E) equal to the price of the product. 
A) less than the wage rate. 
B) equal to the wage rate. 
C) greater than 1. 
D) less than the price of the product. 
E) equal to the price of the product.

Question 9

-Kevin owns a personal training gym in Laredo, Texas.He charges $41 per session.The above table shows the marginal product of trainers in Kevin's gym.If Kevin hires four trainers, the value of marginal product of the fourth trainer equals

Accepted Answer

A) 10 clients. 
B) $410. 
C) $41. 
D) 1 client. 
E) $10.25. 
A) 10 clients. 
B) $410. 
C) $41. 
D) 1 client. 
E) $10.25.

Question 10

The market for land

Accepted Answer

A) has an elastic supply. 
B) has a perfectly inelastic supply. 
C) determines the equilibrium interest rate. 
D) has an upward sloping supply curve. 
E) has no equilibrium because both the demand curve and the supply curve are vertical. 
A) has an elastic supply. 
B) has a perfectly inelastic supply. 
C) determines the equilibrium interest rate. 
D) has an upward sloping supply curve. 
E) has no equilibrium because both the demand curve and the supply curve are vertical.

Question 11

Which of the following represents a derived demand? Demand for

Accepted Answer

A) a taco by Sam when she is hungry. 
B) golf balls by Jose, who is planning on going golfing with his boss. 
C) a grocery clerk by the local Safeway. 
D) an automobile by Jack, who wants a car to get to school. 
E) new clothing by Shaniq, who is starting a new job. 
A) a taco by Sam when she is hungry. 
B) golf balls by Jose, who is planning on going golfing with his boss. 
C) a grocery clerk by the local Safeway. 
D) an automobile by Jack, who wants a car to get to school. 
E) new clothing by Shaniq, who is starting a new job.

Question 12

The demand for a nonrenewable resource is

Accepted Answer

A) determined by the value of its marginal product. 
B) fixed and cannot change. 
C) perfectly inelastic. 
D) perfectly elastic. 
E) not defined because the resource can be used only once. 
A) determined by the value of its marginal product. 
B) fixed and cannot change. 
C) perfectly inelastic. 
D) perfectly elastic. 
E) not defined because the resource can be used only once.

Question 13

The table below has the marginal product schedule for Nick's Pizza.
a∙If pizza sells for $8 each, complete the last column of the table.
   
b∙If Nick can hire workers at the going wage rate of $16 an hour, how many workers does Nick hire?

Accepted Answer

@#IMG-DLM& 
a∙The completed table is abo

Question 14

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $53.Which of the following is correct?

Accepted Answer

A) The firm is employing the profit-maximizing quantity of labor. 
B) Too much labor is currently employed and the firm will lay off some workers. 
C) Too few workers are currently employed and the firm will hire more workers. 
D) The firm should shut down and produce nothing. 
E) More information about the price of the product is needed to determine if the firm is hiring the profit-maximizing amount of labor. 
A) The firm is employing the profit-maximizing quantity of labor. 
B) Too much labor is currently employed and the firm will lay off some workers. 
C) Too few workers are currently employed and the firm will hire more workers. 
D) The firm should shut down and produce nothing. 
E) More information about the price of the product is needed to determine if the firm is hiring the profit-maximizing amount of labor.

Question 15

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75.Which of the following is correct?

Accepted Answer

A) The firm is employing the profit-maximizing quantity of labor. 
B) Too much labor is currently employed and the firm will lay off some workers. 
C) Too few workers are currently employed and the firm will hire more workers. 
D) The firm should shut down and produce nothing. 
E) More information about the price of the product is needed to determine if the firm is hiring the profit-maximizing amount of labor. 
A) The firm is employing the profit-maximizing quantity of labor. 
B) Too much labor is currently employed and the firm will lay off some workers. 
C) Too few workers are currently employed and the firm will hire more workers. 
D) The firm should shut down and produce nothing. 
E) More information about the price of the product is needed to determine if the firm is hiring the profit-maximizing amount of labor.

Question 16

If the price of movie tickets increases, there is

Accepted Answer

A) an increase in the demand for actors and actresses. 
B) a decrease in the demand for actors and actresses. 
C) no change in the demand for actors and actresses. 
D) a decrease in the supply of actors and actresses. 
E) an increase in the supply of actors and actresses. 
A) an increase in the demand for actors and actresses. 
B) a decrease in the demand for actors and actresses. 
C) no change in the demand for actors and actresses. 
D) a decrease in the supply of actors and actresses. 
E) an increase in the supply of actors and actresses.

Question 17

What is the Hotelling Principle? Have resource prices behaved as the principle predicts?

Accepted Answer

The Hotelling Principle states that the

Question 18

Why might an individual decrease the quantity of labor he or she supplies when the wage rate increases? Briefly explain your answer.

Accepted Answer

A worker might decrease the quantity of

Question 19

If Saudi Arabia expects the price of oil to rise by a larger percentage than the interest rate, Saudi Arabia will ________.If Saudi Arabia expects the price of oil to rise by a smaller percentage than the interest rate, Saudi Arabia will ________.

Accepted Answer

A) hold oil off the market; want to sell oil today 
B) want to sell oil today; hold oil off the market 
C) decrease its demand for oil; increase its demand for oil 
D) increase its demand for oil; decrease its demand for oil 
E) None of the above answers are correct because the interest rate has nothing to do with Saudi Arabia's decisions in the oil market. 
A) hold oil off the market; want to sell oil today 
B) want to sell oil today; hold oil off the market 
C) decrease its demand for oil; increase its demand for oil 
D) increase its demand for oil; decrease its demand for oil 
E) None of the above answers are correct because the interest rate has nothing to do with Saudi Arabia's decisions in the oil market.

Question 20

Which of the following statements about the supply of labor is correct?

Accepted Answer

A) It is perfectly inelastic at whatever quantity individuals are willing to work. 
B) An individual's supply of labor curve is always upward sloping, like the supply curves of other items. 
C) It is perfectly price elastic at the current wage rate. 
D) An individual's supply of labor curve can bend backwards. 
E) The supply of labor curve is shaped like an upside-down U. 
A) It is perfectly inelastic at whatever quantity individuals are willing to work. 
B) An individual's supply of labor curve is always upward sloping, like the supply curves of other items. 
C) It is perfectly price elastic at the current wage rate. 
D) An individual's supply of labor curve can bend backwards. 
E) The supply of labor curve is shaped like an upside-down U.

As a factor of production, any of the gifts of nature are called

Which of the following factors have a derived demand? I∙labor Ii∙capital Iii∙raw materials

If the marginal product of labor increases, the firm's demand for labor curve

The wage paid to labor is

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

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

The rule for employing a profit-maximizing amount of labor is to continue to hire additional workers until the additional worker's value of marginal product is

-Kevin owns a personal training gym in Laredo, Texas.He charges $41 per session.The above table shows the marginal product of trainers in Kevin's gym.If Kevin hires four trainers, the value of marginal product of the fourth trainer equals

The market for land

Which of the following represents a derived demand? Demand for

The demand for a nonrenewable resource is

The table below has the marginal product schedule for Nick's Pizza. a∙If pizza sells for $8 each, complete the last column of the table. b∙If Nick can hire workers at the going wage rate of $16 an hour, how many workers does Nick hire?

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $53.Which of the following is correct?

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75.Which of the following is correct?

If the price of movie tickets increases, there is

What is the Hotelling Principle? Have resource prices behaved as the principle predicts?

Why might an individual decrease the quantity of labor he or she supplies when the wage rate increases? Briefly explain your answer.

If Saudi Arabia expects the price of oil to rise by a larger percentage than the interest rate, Saudi Arabia will .If Saudi Arabia expects the price of oil to rise by a smaller percentage than the interest rate, Saudi Arabia will .

Which of the following statements about the supply of labor is correct?

Getting Started

The Usand 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

As a factor of production, any of the gifts of nature are called

Which of the following factors have a derived demand? I∙labor Ii∙capital Iii∙raw materials

If the marginal product of labor increases, the firm's demand for labor curve

The wage paid to labor is

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

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

The rule for employing a profit-maximizing amount of labor is to continue to hire additional workers until the additional worker's value of marginal product is

-Kevin owns a personal training gym in Laredo, Texas.He charges $41 per session.The above table shows the marginal product of trainers in Kevin's gym.If Kevin hires four trainers, the value of marginal product of the fourth trainer equals

The market for land

Which of the following represents a derived demand? Demand for

The demand for a nonrenewable resource is

The table below has the marginal product schedule for Nick's Pizza. a∙If pizza sells for $8 each, complete the last column of the table. b∙If Nick can hire workers at the going wage rate of $16 an hour, how many workers does Nick hire?

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $53.Which of the following is correct?

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75.Which of the following is correct?

If the price of movie tickets increases, there is

What is the Hotelling Principle? Have resource prices behaved as the principle predicts?

Why might an individual decrease the quantity of labor he or she supplies when the wage rate increases? Briefly explain your answer.

If Saudi Arabia expects the price of oil to rise by a larger percentage than the interest rate, Saudi Arabia will ________.If Saudi Arabia expects the price of oil to rise by a smaller percentage than the interest rate, Saudi Arabia will ________.

Which of the following statements about the supply of labor is correct?

Getting Started

The Usand 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

If Saudi Arabia expects the price of oil to rise by a larger percentage than the interest rate, Saudi Arabia will .If Saudi Arabia expects the price of oil to rise by a smaller percentage than the interest rate, Saudi Arabia will .