Question 1

Table 12-3
 
-Refer to Table 12-3.What is the marginal product of the third worker?

Accepted Answer

A)  7
B)  8
C)  25
D)  75E) C) and D)
F) B) and C)

Question 2

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Accepted Answer

A)  The labor supply will stay unchanged until the wages paid to pear pickers change.
B)  The labor supply will decrease.
C)  The labor supply will increase.
D)  The labor supply may fall or rise,depending on the price of pears.E) B) and C)
F) A) and B)

Question 3

Table 12-2
 
-Refer to Table 12-2.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $5 in a competitive market.For which level of employment is the marginal product of labor greatest?

Accepted Answer

A)  1 worker
B)  2 workers
C)  3 workers
D)  4 workersE) A) and C)
F) C) and D) B

Question 4

A profit-maximizing restaurant owner will hire more busboys to keep more tables clean and quickly available to new customers,as long as the

Accepted Answer

A)  marginal product of busboys exceeds the marginal product of other employees.
B)  hourly wage of busboys is lower than that of cashiers and cooks.
C)  marginal revenue product of busboys exceeds their wage rate.
D)  wage of busboys exceeds the wage of other employees.E) B) and C)
F) B) and D)

Question 5

Which of the following is the best definition of "physical capital"?

Accepted Answer

A)  the labor utilized in the production process
B)  man-made resources used to produce other goods
C)  natural resources in their original state
D)  the ownership of stock shares issued by a corporationE) B) and C)
F) A) and D)

Question 6

Unions often attempt to obtain stricter certification requirements and/or longer apprenticeships.These changes will tend to raise union workers' wages because they

Accepted Answer

A)  create unnecessary unemployment.
B)  shift the labor supply curve leftward.
C)  decrease the marginal product of labor.
D)  increase the demand for the product.E) A) and B)
F) B) and C)

Question 7

The demand for a resource depends largely on the

Accepted Answer

A)  demand for the products that it produces.
B)  price of the resource.
C)  supply of the resource.
D)  cost of producing the resource.E) A) and D)
F) A) and C)

Question 8

Assume that the demand for paper products increases.Then,we expect that the

Accepted Answer

A)  demand for trees will also increase.
B)  demand for trees will stay the same.
C)  demand for trees will decrease.
D)  effect on the demand for trees is uncertain;it depends on the elasticity of the demand for paper.E) None of the above
F) A) and B) A

Question 9

Assume that skilled labor costs twice as much as unskilled labor,a profit-maximizing firm will

Accepted Answer

A)  always hire more skilled labor because it is more productive.
B)  always hire more unskilled labor because it is cheaper.
C)  hire until it equalizes the two marginal products.
D)  hire until the marginal product of unskilled labor is one-half that of skilled labor.
E)  hire until the marginal product of unskilled labor is two times that of skilled labor.F) A) and B)
G) A) and C)

Question 10

The optimal level of resource use comes when

Accepted Answer

A)  MRP exceeds input price.
B)  MRP is less than input price.
C)  MRP equals input price.
D)  use of the resource exhausts the producer's funds.E) A) and B)
F) A) and C) C

Question 11

Use the information given in the table below to answer the following question(s) .Assume the firm hires labor competitively and sells its product in a competitive price-taker market at a price of $2 per unit.
Table 12-7
 
-Refer to Table 12-7.What is the marginal revenue product of the fifth unit of labor?

Accepted Answer

A)  $2
B)  $4
C)  $20
D)  $100E) None of the above
F) C) and D)

Question 12

An unexpected increase in the demand for accountants will lead to

Accepted Answer

A)  an increase in their earnings and an expansion in the future supply of accountants.
B)  a decrease in the incentive of students to prepare for a career in accounting.
C)  a reduction in the current earnings of accountants,followed by a reduction in the future supply of accountants.
D)  a reduction in the employment of accountants but not their wage rates.E) None of the above
F) A) and B)

Question 13

Suppose a new oxygen-enrichment process will cut in half the energy required to smelt copper.The firm selling licenses for this patented process will experience a greater demand for its product when

Accepted Answer

A)  the price of copper falls and smelters become more desperate to economize.
B)  energy prices are expected to fall.
C)  energy prices are expected to rise.
D)  the price of steel,a substitute for copper,declines.E) A) and C)
F) B) and D)

Question 14

When the supply of workers is plentiful,one would predict that market wages would be

Accepted Answer

A)  determined solely by factors that affect supply.
B)  determined solely by factors that affect demand.
C)  low,other things equal.
D)  high,other things equal.E) B) and C)
F) A) and D)

Question 15

As the price paid to a resource increases,

Accepted Answer

A)  the supply of that resource will increase in the resource market.
B)  the supply of that resource will decrease in the resource market.
C)  resources will shift from other resource markets to this one.
D)  resources will shift from this resource market to others.
E)  resource usage will be unaffected.F) B) and D)
G) None of the above

Question 16

If a firm is using a resource hired in a perfectly competitive market,and if the price of the resource exceeds the marginal revenue product of the resource,

Accepted Answer

A)  more of the resource should be used.
B)  less of the resource should be used.
C)  the firm should pay a lower price for the resource.
D)  the firm should pay a higher price for the resource.
E)  the firm is using the optimal amount of the resourceF) D) and E)
G) None of the above

Question 17

If a profit-maximizing firm hires an additional unit of labor,what must be true about labor's wage and marginal revenue product?

Accepted Answer

A)  Its wage always equals its marginal revenue product.
B)  Its wage is always greater than its marginal revenue product.
C)  Its wage is always total revenue minus marginal revenue product.
D)  Its wage is always less than or equal to its marginal revenue product.E) A) and B)
F) C) and D)

Question 18

As the price of a resource decreases,

Accepted Answer

A)  demand for that resource increases.
B)  the quantity demanded of that resource decreases.
C)  the supply of that resource increases.
D)  producers are more willing and able to hire that resource.
E)  producers are less willing and able to hire that resource.F) None of the above
G) A) and E)

Question 19

Which of the following would tend to decrease the demand for coal miners?

Accepted Answer

A)  an increase in the wages of coal miners
B)  an increase in the price of oil
C)  a decrease in the demand for coal
D)  an increase in the supply of coal minersE) None of the above
F) A) and D)

Question 20

If steel workers obtain a substantial wage increase,employment in the steel industry will be most likely to fall if

Accepted Answer

A)  the demand curve for steel is highly inelastic.
B)  the demand curve for steel is highly elastic.
C)  the demand curve for steel workers is highly inelastic.
D)  there are no good substitutes for steel.E) A) and B)
F) None of the above

Exam 25: The Supply of and Demand for Productive Resources

Table 12-3 -Refer to Table 12-3.What is the marginal product of the third worker?

Correct Answer
verified

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Correct Answer
verified

Table 12-2 -Refer to Table 12-2.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $5 in a competitive market.For which level of employment is the marginal product of labor greatest?

Correct Answer
verified
B

A profit-maximizing restaurant owner will hire more busboys to keep more tables clean and quickly available to new customers,as long as the

Correct Answer
verified

Which of the following is the best definition of "physical capital"?

Correct Answer
verified

Unions often attempt to obtain stricter certification requirements and/or longer apprenticeships.These changes will tend to raise union workers' wages because they

Correct Answer
verified

The demand for a resource depends largely on the

Correct Answer
verified

Assume that the demand for paper products increases.Then,we expect that the

Correct Answer
verified
A

Assume that skilled labor costs twice as much as unskilled labor,a profit-maximizing firm will

Correct Answer
verified

The optimal level of resource use comes when

Correct Answer
verified
C

Correct Answer
verified

An unexpected increase in the demand for accountants will lead to

Correct Answer
verified

Suppose a new oxygen-enrichment process will cut in half the energy required to smelt copper.The firm selling licenses for this patented process will experience a greater demand for its product when

Correct Answer
verified

When the supply of workers is plentiful,one would predict that market wages would be

Correct Answer
verified

As the price paid to a resource increases,

Correct Answer
verified

If a firm is using a resource hired in a perfectly competitive market,and if the price of the resource exceeds the marginal revenue product of the resource,

Correct Answer
verified

If a profit-maximizing firm hires an additional unit of labor,what must be true about labor's wage and marginal revenue product?

Correct Answer
verified

As the price of a resource decreases,

Correct Answer
verified

Which of the following would tend to decrease the demand for coal miners?

Correct Answer
verified

If steel workers obtain a substantial wage increase,employment in the steel industry will be most likely to fall if

Correct Answer
verified

Exam 25: The Supply of and Demand for Productive Resources

Table 12-3 -Refer to Table 12-3.What is the marginal product of the third worker?

Correct AnswerverifiedShow Answer

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Correct AnswerverifiedShow Answer

Table 12-2 -Refer to Table 12-2.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $5 in a competitive market.For which level of employment is the marginal product of labor greatest?

Correct AnswerverifiedB

A profit-maximizing restaurant owner will hire more busboys to keep more tables clean and quickly available to new customers,as long as the

Correct AnswerverifiedShow Answer

Which of the following is the best definition of "physical capital"?

Correct AnswerverifiedShow Answer

Unions often attempt to obtain stricter certification requirements and/or longer apprenticeships.These changes will tend to raise union workers' wages because they

Correct AnswerverifiedShow Answer

The demand for a resource depends largely on the

Correct AnswerverifiedShow Answer

Assume that the demand for paper products increases.Then,we expect that the

Correct AnswerverifiedA

Assume that skilled labor costs twice as much as unskilled labor,a profit-maximizing firm will

Correct AnswerverifiedShow Answer

The optimal level of resource use comes when

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

An unexpected increase in the demand for accountants will lead to

Correct AnswerverifiedShow Answer

Suppose a new oxygen-enrichment process will cut in half the energy required to smelt copper.The firm selling licenses for this patented process will experience a greater demand for its product when

Correct AnswerverifiedShow Answer

When the supply of workers is plentiful,one would predict that market wages would be

Correct AnswerverifiedShow Answer

As the price paid to a resource increases,

Correct AnswerverifiedShow Answer

If a firm is using a resource hired in a perfectly competitive market,and if the price of the resource exceeds the marginal revenue product of the resource,

Correct AnswerverifiedShow Answer

If a profit-maximizing firm hires an additional unit of labor,what must be true about labor's wage and marginal revenue product?

Correct AnswerverifiedShow Answer

As the price of a resource decreases,

Correct AnswerverifiedShow Answer

Which of the following would tend to decrease the demand for coal miners?

Correct AnswerverifiedShow Answer

If steel workers obtain a substantial wage increase,employment in the steel industry will be most likely to fall if

Correct AnswerverifiedShow Answer

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B

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A

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C

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