Exam 15: Factor Markets

You grow poplar trees.The lumber yard purchases cut trees from you.The trees grow 1 foot per year.Assuming a constant real price per foot for poplar and a real interest rate of 3%,would you sell a 20-foot tree today?

(Essay)

4.9/5

(83)

Question 101

Explain why a decrease in an input price causes less of an increase in the quantity demanded of the factor if we assumed that product price remained constant.

(Essay)

4.9/5

(88)

Question 102

If the price of a competitive firm's output increases,the firm responds in the short run by demanding more labor.

(True/False)

4.9/5

(80)

Question 103

A firm's demand for labor is downward sloping because of

(Multiple Choice)

4.7/5

(83)

Question 104

Suppose a new cost-saving device will generate $1,000 net savings per year to a firm.The device costs $10,000.Should the firm purchase the device?

(Multiple Choice)

4.8/5

(68)

Question 105

In the short run,which one of the following causes a competitive firm to hire more labor?

(Multiple Choice)

4.9/5

(78)

Question 106

A firm should make an investment if the expected return is greater than

(Multiple Choice)

4.9/5

(78)

Question 107

Suppose the marginal product of labor equals 1/L.If the wage is $1 per unit of labor,what is the short-run effect on the firm's labor demand if the price of output were to double?

(Multiple Choice)

4.7/5

(80)

Question 108

A bond issuer agrees to pay a stated nominal amount each year.An increase in the nominal interest rate will cause

(Multiple Choice)

4.8/5

(75)

Question 109

In reality,according to the model developed in Section 15.5 of the textbook,prices of non-renewable resources have not increased continually because of

(Multiple Choice)

4.9/5

(78)

Question 110

In the long run,a fall in the input price causes less of an increase in factor demand

(Multiple Choice)

4.7/5

(85)

Question 111

As the interest rate rises,the present value of a given perpetual stream of income

(Multiple Choice)

4.8/5

(84)

Question 112

Suppose the labor market is competitive,the supply curve of labor is upward sloping,and the amount of capital is fixed.If the output market changes from a competitive market to a monopoly,what is the effect on its demand for labor? Explain.

(Essay)

4.9/5

(82)

Question 113

The profit maximizing condition for a firm selling its output in a competitive market and buying its resources in a competitive market is

(Multiple Choice)

4.8/5

(65)

Question 114

Suppose $100 is deposited in a bank account paying 5% compounded annually.If the interest earned is X after five years,then the interest earned will be 2X after 10 years.

(True/False)

4.9/5

(88)

Question 115

Showing 101 - 115 of 115

You grow poplar trees.The lumber yard purchases cut trees from you.The trees grow 1 foot per year.Assuming a constant real price per foot for poplar and a real interest rate of 3%,would you sell a 20-foot tree today?

Explain why a decrease in an input price causes less of an increase in the quantity demanded of the factor if we assumed that product price remained constant.

If the price of a competitive firm's output increases,the firm responds in the short run by demanding more labor.

A firm's demand for labor is downward sloping because of

Suppose a new cost-saving device will generate $1,000 net savings per year to a firm.The device costs $10,000.Should the firm purchase the device?

In the short run,which one of the following causes a competitive firm to hire more labor?

A firm should make an investment if the expected return is greater than

Suppose the marginal product of labor equals 1/L.If the wage is $1 per unit of labor,what is the short-run effect on the firm's labor demand if the price of output were to double?

A bond issuer agrees to pay a stated nominal amount each year.An increase in the nominal interest rate will cause

In reality,according to the model developed in Section 15.5 of the textbook,prices of non-renewable resources have not increased continually because of

In the long run,a fall in the input price causes less of an increase in factor demand

As the interest rate rises,the present value of a given perpetual stream of income

Suppose the labor market is competitive,the supply curve of labor is upward sloping,and the amount of capital is fixed.If the output market changes from a competitive market to a monopoly,what is the effect on its demand for labor? Explain.

The profit maximizing condition for a firm selling its output in a competitive market and buying its resources in a competitive market is

Suppose $100 is deposited in a bank account paying 5% compounded annually.If the interest earned is X after five years,then the interest earned will be 2X after 10 years.

Introduction

Supply and Demand

A Consumers Constrained Choice

Demand

Consumer Welfare and Policy Analysis

Firms and Production

Costs

Competitive Firms and Markets

Properties and Applications of the Competitive Model

General Equilibrium and Economic Welfare

Monopoly and Monopsony

Pricing and Advertising

Game Theory

Oligopoly and Monopolistic Competition

Uncertainty

Property Rights, Externalities, Rivalry, and Exclusion

Asymmetric Information

Contracts and Moral Hazards

Filters