Exam 14: Resource Markets

If government-assured medical and other benefits increase the labor costs,everything else remaining constant,then firms will tend to hire more of the other resources instead of labor.

(True/False)

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Question 21

The resource market comprises of the households and firms where the firms sell their resources to the households.

(True/False)

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Question 22

If the elasticity of supply of a resource is greater than zero but less than infinity,its income will comprise of:

(Multiple Choice)

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Question 23

The greater the elasticity of supply of a resource the greater is its economic rent.

(True/False)

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Question 24

A firm that was initially a monopsonist but has to buy from a competitive resource market all of a sudden will:

(Multiple Choice)

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Question 25

Which of the following statements brings out the relationship between the value of marginal product (VMP) and the marginal revenue product (MRP)?

(Multiple Choice)

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Question 26

An automobile manufacturer uses land,labor,capital,and entrepreneurial ability to produce cars and trucks.If the price of trucks increases,the automobile manufacturer would not _____.

(Multiple Choice)

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Question 27

A monopolist hiring labor in a perfectly competitive resource market is faced with a:

(Multiple Choice)

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Question 28

The following table shows the marginal revenue of a firm and the marginal physical product of different units of labor in a perfectly competitive labor market. Table 14.5 Note: Marginal revenue product of a resource is the product of MPP and MR. In Table 14.5,if the wage rate is $10,how many workers will be employed by a profit-maximizing firm ?

(Multiple Choice)

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Question 29

Earnings of a resource is termed as economic rent if:

(Multiple Choice)

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Question 30

A monopsonist firm pays a price to a factor that is:

(Multiple Choice)

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Question 31

A perfectly competitive firm hires more resources than a monopolist firm.

(True/False)

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Question 32

If the resource market is perfectly competitive:

(Multiple Choice)

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Question 33

A firm will demand more units of a resource if:

(Multiple Choice)

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Question 34

The following table shows the marginal productivity of different units of labor for producing a product. Table 14.4 In the table, MR: Marginal Revenue MPP: Marginal Physical Product In Table 14.4,if marginal revenue product is equal to the product of MPP and MR,what wage rate would be consistent with a profit-maximizing firm hiring six laborers?

(Multiple Choice)

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Question 35

Other things being equal,the marginal revenue product for labor hired by a firm that is a monopolist in the output market:

(Multiple Choice)

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Question 36

The marginal-factor cost (MFC) is the:

(Multiple Choice)

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Question 37

If there is imperfect competition in the product market,the marginal revenue product of a factor will be greater than the value of its marginal product.

(True/False)

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Question 38

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor. Figure 14.6 In the figure, D = MRP implies demand for labor = Marginal Revenue Product MFC represents Marginal Factor Cost curve S represents the supply curve of labor Refer to Figure 14.6.Calculate the quantity of labor hired by a monopsonist.

(Multiple Choice)

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Question 39

Tools and equipments used in production are:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 112

If government-assured medical and other benefits increase the labor costs,everything else remaining constant,then firms will tend to hire more of the other resources instead of labor.

The resource market comprises of the households and firms where the firms sell their resources to the households.

If the elasticity of supply of a resource is greater than zero but less than infinity,its income will comprise of:

The greater the elasticity of supply of a resource the greater is its economic rent.

A firm that was initially a monopsonist but has to buy from a competitive resource market all of a sudden will:

Which of the following statements brings out the relationship between the value of marginal product (VMP) and the marginal revenue product (MRP)?

An automobile manufacturer uses land,labor,capital,and entrepreneurial ability to produce cars and trucks.If the price of trucks increases,the automobile manufacturer would not _____.

A monopolist hiring labor in a perfectly competitive resource market is faced with a:

Earnings of a resource is termed as economic rent if:

A monopsonist firm pays a price to a factor that is:

A perfectly competitive firm hires more resources than a monopolist firm.

If the resource market is perfectly competitive:

A firm will demand more units of a resource if:

Other things being equal,the marginal revenue product for labor hired by a firm that is a monopolist in the output market:

The marginal-factor cost (MFC) is the:

If there is imperfect competition in the product market,the marginal revenue product of a factor will be greater than the value of its marginal product.

Tools and equipments used in production are:

Economics: The World Around You

Choice, opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

Consumer Choice

Supply: The Costs of Doing Business

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

The Labor Market

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution,Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

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