Question 1

The supply curve of truck drivers is upward sloping and demand curve is downward sloping.A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will ____ the equilibrium wage of truck drivers and ____ the number of drivers employed.

Accepted Answer

A)  decrease;decrease
B)  decrease;increase
C)  increase;decrease
D)  increase;increaseE) A) and B)
F) All of the above

Question 2

Figure 12-1
 b D) Sa" class="answers-bank-image d-inline" rel="preload" >
-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?

Accepted Answer

A)  Q₂
B)  Q₃
C)  Sb
D)  SaE) All of the above
F) C) and D)

Question 3

What concept implies that a firm's marginal revenue product curve for labor will slope downward in the short run?

Accepted Answer

A)  diminishing marginal returns
B)  the law of supply
C)  the law of decreasing cost
D)  the price equalization principleE) B) and C)
F) B) and D)

Question 4

Generally,the supply of a resource in the short run will be

Accepted Answer

A)  more elastic than in the long run.
B)  less elastic than in the long run.
C)  equally elastic as the supply of the resource in the long run.
D)  directly related to the elasticity of demand for the product that the resource helps produce.E) A) and B)
F) None of the above

Question 5

Which of the following best illustrates the concept of "derived demand"?

Accepted Answer

A)  A decrease in the price of glass causes the demand for plastic to decrease.
B)  An increase in the demand for bread leads to an increase in the demand for flour.
C)  A decrease in the price of air travel leads to an increase in the quantity demanded of air travel.
D)  An increase in the demand for peanut butter leads to an increase in the demand for jelly.E) A) and B)
F) C) and D)

Question 6

The supply of both physical and human resources in the long run is determined primarily by

Accepted Answer

A)  the presence or absence of economies of scale.
B)  investment choices and resource depreciation.
C)  sunk costs;what happens in the present cannot change the future.
D)  the law of diminishing marginal returns.E) None of the above
F) All of the above

Question 7

The demand for a resource is generally more

Accepted Answer

A)  elastic in the short run because it takes time to alter the ratio of resources used in many production processes.
B)  inelastic in the short run because it takes time to alter the ratio of resources used in many production processes.
C)  elastic in the short run because an increase in the price of the resource may not be expected to last.
D)  inelastic in the short run because once resource suppliers find out they can charge a higher price,they will do so in the long run.E) All of the above
F) B) and D)

Question 8

The notion that the demand for inputs depends on the demand for outputs is termed

Accepted Answer

A)  inverse demand.
B)  derived demand.
C)  proportional demand.
D)  complementary demand.E) B) and C)
F) A) and B)

Question 9

Table 12-5
 
-Refer to Table 12-5.At which number of workers does diminishing marginal product begin?

Accepted Answer

A)  2
B)  3
C)  4
D)  5E) B) and C)
F) C) and D)

Question 10

The labor supply curve reflects how

Accepted Answer

A)  workers' decisions about the labor-leisure tradeoff respond to a change in the wage.
B)  workers' decisions about the opportunity cost of labor respond to a change in the quantity of labor supplied.
C)  firms' decisions about the labor-leisure tradeoff respond to the quantity of labor demanded.
D)  firms' decisions about how the quantity of labor they hire respond to changes in their opportunities to earn profits.E) All of the above
F) None of the above

Question 11

When the marginal revenue product of an input is less than its price,the

Accepted Answer

A)  producer should expand the use of that input.
B)  price of the input will automatically rise in a free market.
C)  producer should reduce the use of that input.
D)  marginal physical product of that input must be below its average physical product.E) A) and B)
F) All of the above

Question 12

When an employer pays the cost of educating a worker,it is likely that the employer

Accepted Answer

A)  is demonstrating altruistic motives.
B)  is pursuing some objective other than profit-maximization.
C)  hopes to recapture its investment in the form of increased labor productivity.
D)  receives reimbursement from the government for the cost of the education.E) All of the above
F) A) and B)

Question 13

The Hardboard Construction Company hired Bob at $10 an hour,but its output of doll houses only increased by three units a day.Two weeks later,the company purchased an $8 hammer for Bob and output increased by twelve units.Since the hammer increased the marginal product more than Bob did,and at less cost,Hardboard fired Bob.Is this consistent with the theory of marginal productivity? Why or why not?

Accepted Answer

This example illustrates a minor flaw wi...

Question 14

Ten cases of spring water are sold for $6 each,and the marginal product of the last unit of labor is 5.If the price of a case increases from $6 to $8,then the marginal revenue product of the last unit of labor would

Accepted Answer

A)  decrease by $10.
B)  increase by $40.
C)  decrease by $30.
D)  increase by $10.
E)  not change.F) B) and D)
G) A) and B)

Question 15

If the demand for a consumer good decreases,the demand for resources required to make the good will

Accepted Answer

A)  increase.
B)  remain the same,but the quantity demanded will increase.
C)  decrease.
D)  increase or decrease depending on whether the demand for the product is elastic or inelastic.E) A) and B)
F) B) and D)

Question 16

Table 12-4
 
-Refer to Table 12-4.What is total output when 4 workers are hired?

Accepted Answer

A)  30
B)  40
C)  120
D)  160E) None of the above
F) A) and B)

Question 17

An unanticipated decline in the demand for legal services will

Accepted Answer

A)  increase both the wages of lawyers and the rate of return they can expect to derive from their legal education.
B)  lead to a shortage in the market for legal services.
C)  reduce the wages of lawyers but not the quantity of legal services supplied.
D)  reduce the wages of lawyers and the rate of return on a legal education..E) A) and B)
F) C) and D)

Question 18

Which of the following is a correct statement about the labor market?

Accepted Answer

A)  Workers determine the supply of labor,and firms determine the demand for labor.
B)  Workers determine the demand for labor,and firms determine the supply of labor.
C)  Workers determine the supply of labor,and government determines the demand for labor.
D)  The forces of supply and demand,while present in the labor market,have nothing to balance in that market.E) A) and B)
F) All of the above

Question 19

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

Accepted Answer

A)  an increase in the number of hours worked per week by a worker in an unskilled laboring job
B)  the purchase of company stock by a worker
C)  a summer internship at a law firm for someone going to law school
D)  payments into a retirement pension plan by a skilled laborerE) A) and B)
F) All of the above

Question 20

If the demand for a consumer good increases,the demand for resources required to make the good will

Accepted Answer

A)  remain the same,but the quantity demanded will increase.
B)  decrease if the demand for the consumer good is inelastic,otherwise the demand will increase.
C)  stay the same,but the quantity demanded will decrease.
D)  increase.E) A) and C)
F) None of the above

Exam 25: The Supply of and Demand for Productive Resources

The notion that the demand for inputs depends on the demand for outputs is termed

Correct Answer
verified

Which of the following is a correct statement about the labor market?

Correct Answer
verified

When an employer pays the cost of educating a worker,it is likely that the employer

Correct Answer
verified

Table 12-4 -Refer to Table 12-4.What is total output when 4 workers are hired?

Correct Answer
verified

Ten cases of spring water are sold for $6 each,and the marginal product of the last unit of labor is 5.If the price of a case increases from $6 to $8,then the marginal revenue product of the last unit of labor would

Correct Answer
verified

The supply curve of truck drivers is upward sloping and demand curve is downward sloping.A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will the equilibrium wage of truck drivers and the number of drivers employed.

Correct Answer
verified

Which of the following best illustrates the concept of "derived demand"?

Correct Answer
verified

Generally,the supply of a resource in the short run will be

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

The labor supply curve reflects how

Correct Answer
verified

Table 12-5 -Refer to Table 12-5.At which number of workers does diminishing marginal product begin?

Correct Answer
verified

What concept implies that a firm's marginal revenue product curve for labor will slope downward in the short run?

Correct Answer
verified

Correct Answer
verified
This example illustrates a minor flaw wi...
View Answer

An unanticipated decline in the demand for legal services will

Correct Answer
verified

If the demand for a consumer good decreases,the demand for resources required to make the good will

Correct Answer
verified

The demand for a resource is generally more

Correct Answer
verified

When the marginal revenue product of an input is less than its price,the

Correct Answer
verified

The supply of both physical and human resources in the long run is determined primarily by

Correct Answer
verified

If the demand for a consumer good increases,the demand for resources required to make the good will

Correct Answer
verified

Exam 25: The Supply of and Demand for Productive Resources

The notion that the demand for inputs depends on the demand for outputs is termed

Correct AnswerverifiedShow Answer

Which of the following is a correct statement about the labor market?

Correct AnswerverifiedShow Answer

When an employer pays the cost of educating a worker,it is likely that the employer

Correct AnswerverifiedShow Answer

Table 12-4 -Refer to Table 12-4.What is total output when 4 workers are hired?

Correct AnswerverifiedShow Answer

Ten cases of spring water are sold for $6 each,and the marginal product of the last unit of labor is 5.If the price of a case increases from $6 to $8,then the marginal revenue product of the last unit of labor would

Correct AnswerverifiedShow Answer

The supply curve of truck drivers is upward sloping and demand curve is downward sloping.A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will ____ the equilibrium wage of truck drivers and ____ the number of drivers employed.

Correct AnswerverifiedShow Answer

Which of the following best illustrates the concept of "derived demand"?

Correct AnswerverifiedShow Answer

Generally,the supply of a resource in the short run will be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

The labor supply curve reflects how

Correct AnswerverifiedShow Answer

Table 12-5 -Refer to Table 12-5.At which number of workers does diminishing marginal product begin?

Correct AnswerverifiedShow Answer

What concept implies that a firm's marginal revenue product curve for labor will slope downward in the short run?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThis example illustrates a minor flaw wi...View AnswerShow Answer

An unanticipated decline in the demand for legal services will

Correct AnswerverifiedShow Answer

If the demand for a consumer good decreases,the demand for resources required to make the good will

Correct AnswerverifiedShow Answer

The demand for a resource is generally more

Correct AnswerverifiedShow Answer

When the marginal revenue product of an input is less than its price,the

Correct AnswerverifiedShow Answer

The supply of both physical and human resources in the long run is determined primarily by

Correct AnswerverifiedShow Answer

If the demand for a consumer good increases,the demand for resources required to make the good will

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The supply curve of truck drivers is upward sloping and demand curve is downward sloping.A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will the equilibrium wage of truck drivers and the number of drivers employed.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
This example illustrates a minor flaw wi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified