Question 1

Land

Accepted Answer

A)  is a nonrenewable resource. 
B)  has an elastic supply but not perfectly elastic. 
C)  is the only factor of production that is not traded in a market. 
D)  has a perfectly inelastic supply. 
E)  has a perfectly elastic supply. 
A)  is a nonrenewable resource. 
B)  has an elastic supply but not perfectly elastic. 
C)  is the only factor of production that is not traded in a market. 
D)  has a perfectly inelastic supply. 
E)  has a perfectly elastic supply.

Question 2

The figure above shows a firm's VMP curve.
-Suppose that the price of the product rises.As a result,

Accepted Answer

A)  there is a movement upward along the curve, such as a movement from point C to point B. 
B)  there is a movement downward along the curve, such as a movement from point C to point D. 
C)  the curve shifts rightward. 
D)  the curve shifts leftward. 
E)  More information is needed to answer the question. 
A)  there is a movement upward along the curve, such as a movement from point C to point B. 
B)  there is a movement downward along the curve, such as a movement from point C to point D. 
C)  the curve shifts rightward. 
D)  the curve shifts leftward. 
E)  More information is needed to answer the question.

Question 3

Which of the following is NOT a method by which unions try to increase the demand for the labor of their members?

Accepted Answer

A)  increasing the marginal product of union members 
B)  increasing the supply of the goods produced by union labor 
C)  supporting minimum wage laws 
D)  supporting import restrictions 
E)  supporting immigration restrictions 
A)  increasing the marginal product of union members 
B)  increasing the supply of the goods produced by union labor 
C)  supporting minimum wage laws 
D)  supporting import restrictions 
E)  supporting immigration restrictions

Question 4

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 5

If the supply of a factor is perfectly inelastic,then

Accepted Answer

A)  no more than the existing quantity can be supplied. 
B)  the supply curve is horizontal. 
C)  sellers will provide whatever quantity is demanded at the going price. 
D)  a rise in price results in no quantity being supplied. 
E)  a fall in price results in no quantity being supplied. 
A)  no more than the existing quantity can be supplied. 
B)  the supply curve is horizontal. 
C)  sellers will provide whatever quantity is demanded at the going price. 
D)  a rise in price results in no quantity being supplied. 
E)  a fall in price results in no quantity being supplied.

Question 6

Which of the following is NOT 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 7

The supply of nonrenewable natural resources is

Accepted Answer

A)  perfectly inelastic. 
B)  perfectly elastic. 
C)  always elastic but not necessarily perfectly elastic. 
D)  inelastic at high prices and elastic at low prices. 
E)  elastic at high prices and inelastic at low prices. 
A)  perfectly inelastic. 
B)  perfectly elastic. 
C)  always elastic but not necessarily perfectly elastic. 
D)  inelastic at high prices and elastic at low prices. 
E)  elastic at high prices and inelastic at low prices.

Question 8

The value of marginal product is equal to the

Accepted Answer

A)  additional revenue from selling one more unit of the product. 
B)  change in total revenue from selling one more unit of product. 
C)  additional cost of hiring one more unit of a factor of production. 
D)  change in revenue from hiring one more unit of a factor of production. 
E)  change in total cost when one more unit of the product is produced. 
A)  additional revenue from selling one more unit of the product. 
B)  change in total revenue from selling one more unit of product. 
C)  additional cost of hiring one more unit of a factor of production. 
D)  change in revenue from hiring one more unit of a factor of production. 
E)  change in total cost when one more unit of the product is produced.

Question 9

The demand curve for a factor of production is

Accepted Answer

A)  the same as the factor's supply curve. 
B)  upward sloping. 
C)  the same as the factor's value of marginal product curve. 
D)  vertical. 
E)  None of the above answers is correct. 
A)  the same as the factor's supply curve. 
B)  upward sloping. 
C)  the same as the factor's value of marginal product curve. 
D)  vertical. 
E)  None of the above answers is correct.

Question 10

The supply of labor curve for an individual is

Accepted Answer

A)  upward sloping at all wage rates. 
B)  downward sloping at all wage rates. 
C)  upward sloping for lower wage rates and begins to slope downward at higher wage rates. 
D)  downward sloping for lower wage rates and begins to slope upward at higher wage rates. 
E)  an upside-down U-shape. 
A)  upward sloping at all wage rates. 
B)  downward sloping at all wage rates. 
C)  upward sloping for lower wage rates and begins to slope downward at higher wage rates. 
D)  downward sloping for lower wage rates and begins to slope upward at higher wage rates. 
E)  an upside-down U-shape.

Question 11

If the wage rate is above the equilibrium wage rate,the quantity of labor demanded is ________ the quantity of labor supplied.

Accepted Answer

A)  greater than 
B)  less than 
C)  equal to 
D)  the negative of 
E)  not comparable to 
A)  greater than 
B)  less than 
C)  equal to 
D)  the negative of 
E)  not comparable to

Question 12

A profit-maximizing firm hires labor up to the point where

Accepted Answer

A)  price of the product equals the value of marginal product. 
B)  price of the product equals the wage rate. 
C)  the wage rate multiplied by the quantity of labor equals the marginal product. 
D)  the wage rate equals the value of marginal product. 
E)  marginal revenue equals the wage rate. 
A)  price of the product equals the value of marginal product. 
B)  price of the product equals the wage rate. 
C)  the wage rate multiplied by the quantity of labor equals the marginal product. 
D)  the wage rate equals the value of marginal product. 
E)  marginal revenue equals the wage rate.

Question 13

The demand for carpenters needed to build houses represents a

Accepted Answer

A)  direct demand. 
B)  derived demand. 
C)  marginal demand/cost for input. 
D)  supplied demand. 
E)  directed supply. 
A)  direct demand. 
B)  derived demand. 
C)  marginal demand/cost for input. 
D)  supplied demand. 
E)  directed supply.

Question 14

The demand for a resource is derived from the

Accepted Answer

A)  price of the resource. 
B)  supply of the resource. 
C)  supply of substitute resources. 
D)  demand for the good or service that the resource is used to produce. 
E)  supply of complement resources. 
A)  price of the resource. 
B)  supply of the resource. 
C)  supply of substitute resources. 
D)  demand for the good or service that the resource is used to produce. 
E)  supply of complement resources.

Question 15

Why is the demand for labor a "derived demand"?

Accepted Answer

The demand for labor arises because we n

Question 16

The value of marginal product of labor is equal to the marginal product of labor ________ the price of a unit of output.

Accepted Answer

A)  divided by 
B)  multiplied by 
C)  minus 
D)  plus 
E)  squared and then multiplied by 
A)  divided by 
B)  multiplied by 
C)  minus 
D)  plus 
E)  squared and then multiplied by

Question 17

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

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 18

The value of the marginal product of labor is calculated by multiplying the ________ by the ________.

Accepted Answer

A)  quantity of labor; wage rate 
B)  total product; wage rate 
C)  marginal product of labor; price of a unit of the output 
D)  wage rate; price of a unit of the output 
E)  marginal product of labor; wage rate 
A)  quantity of labor; wage rate 
B)  total product; wage rate 
C)  marginal product of labor; price of a unit of the output 
D)  wage rate; price of a unit of the output 
E)  marginal product of labor; wage rate

Question 19

A firm's demand for labor curve shifts when there is a change in
i.the supply of labor.
ii.population.
iii.the equilibrium wage rate.

Accepted Answer

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

Question 20

In the market for land,an increase in demand ________ the equilibrium rent of land and ________ the equilibrium quantity.

Accepted Answer

A)  raises; does not change 
B)  lowers; increases 
C)  raises; increases 
D)  does not change; increases 
E)  does not change; does not change 
A)  raises; does not change 
B)  lowers; increases 
C)  raises; increases 
D)  does not change; increases 
E)  does not change; does not change

Land

The figure above shows a firm's VMP curve. -Suppose that the price of the product rises.As a result,

Which of the following is NOT a method by which unions try to increase the demand for the labor of their members?

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

If the supply of a factor is perfectly inelastic,then

Which of the following is NOT a method used by union to increase their members' wages?

The supply of nonrenewable natural resources is

The value of marginal product is equal to the

The demand curve for a factor of production is

The supply of labor curve for an individual is

If the wage rate is above the equilibrium wage rate,the quantity of labor demanded is ________ the quantity of labor supplied.

A profit-maximizing firm hires labor up to the point where

The demand for carpenters needed to build houses represents a

The demand for a resource is derived from the

Why is the demand for labor a "derived demand"?

The value of marginal product of labor is equal to the marginal product of labor ________ the price of a unit of output.

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

The value of the marginal product of labor is calculated by multiplying the by the .

A firm's demand for labor curve shifts when there is a change in i.the supply of labor. ii.population. iii.the equilibrium wage rate.

In the market for land,an increase in demand the equilibrium rent of land and the equilibrium quantity.

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

Land

The figure above shows a firm's VMP curve. -Suppose that the price of the product rises.As a result,

Which of the following is NOT a method by which unions try to increase the demand for the labor of their members?

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

If the supply of a factor is perfectly inelastic,then

Which of the following is NOT a method used by union to increase their members' wages?

The supply of nonrenewable natural resources is

The value of marginal product is equal to the

The demand curve for a factor of production is

The supply of labor curve for an individual is

If the wage rate is above the equilibrium wage rate,the quantity of labor demanded is ________ the quantity of labor supplied.

A profit-maximizing firm hires labor up to the point where

The demand for carpenters needed to build houses represents a

The demand for a resource is derived from the

Why is the demand for labor a "derived demand"?

The value of marginal product of labor is equal to the marginal product of labor ________ the price of a unit of output.

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

The value of the marginal product of labor is calculated by multiplying the ________ by the ________.

A firm's demand for labor curve shifts when there is a change in i.the supply of labor. ii.population. iii.the equilibrium wage rate.

In the market for land,an increase in demand ________ the equilibrium rent of land and ________ the equilibrium quantity.

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

The value of the marginal product of labor is calculated by multiplying the by the .

In the market for land,an increase in demand the equilibrium rent of land and the equilibrium quantity.