Filters
Question type
Study Flashcards

The demand for airline pilots results from the demand for air travel. This fact is an example of


A) resource substitutability.
B) rising marginal resource cost.
C) elasticity of resource demand.
D) the derived demand for labor.

E) A) and D)
F) B) and D)

Correct Answer

verifed

verified

What are the two key factors that determine the strength of demand for a resource? How do they determine whether a resource is in high demand or low demand?

Correct Answer

verifed

verified

The two factors that determine the stren...

View Answer

What is a firm's MRC?

Correct Answer

verifed

verified

A firm's MRC is the amount by which the ...

View Answer

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


A) As income goes up, the demand for farm products will increase by a smaller relative amount.
B) A decline in the price of margarine will reduce the demand for butter.
C) A decline in the demand for shoes will cause the demand for leather to decline.
D) When the price of gasoline goes up, the demand for motor oil will decline.

E) None of the above
F) All of the above

Correct Answer

verifed

verified

Which of the following will not cause a shift in the demand for resource X?


A) a decline in the price of resource X
B) an increase in the price of the product that resource X is producing
C) a decrease in the price of substitute resource Y
D) an increase in the productivity of resource X

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

For a firm selling its product in a purely competitive market, the marginal revenue product of labor can be found by


A) adding marginal product to total product as one more unit of labor is employed.
B) adding marginal revenue to total product as one more unit of labor is employed.
C) multiplying marginal product by product price.
D) dividing marginal product by product price.

E) None of the above
F) C) and D)

Correct Answer

verifed

verified

Refer to the given data. Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $12 to $16. As a result of the wage increase, firms will hire A) fewer workers, and the total paid out for wages will increase. B) fewer workers, and the total paid out for wages will decline. C) fewer workers, and the total paid out for wages will remain unchanged. D) more capital, if capital and labor are used in fixed proportions in production. Refer to the given data. Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $12 to $16. As a result of the wage increase, firms will hire


A) fewer workers, and the total paid out for wages will increase.
B) fewer workers, and the total paid out for wages will decline.
C) fewer workers, and the total paid out for wages will remain unchanged.
D) more capital, if capital and labor are used in fixed proportions in production.

E) C) and D)
F) B) and C)

Correct Answer

verifed

verified

The marginal productivity theory of income distribution has been criticized because


A) the resulting distribution of income is likely to be too equal to maintain production incentives.
B) income from inherited property is inconsistent with the theory.
C) purely competitive conditions characterize most resource markets.
D) it fails to recognize that resource demand is derived from product demand.

E) C) and D)
F) B) and D)

Correct Answer

verifed

verified

What are two examples of occupations that are expected to experience a rapid decline in employment from 2016-2026? Why are these occupations likely to experience this decline?

Correct Answer

verifed

verified

Most of the occupations declining are be...

View Answer

Suppose that a union successfully negotiated a 14 percent wage increase and the quantity of labor demanded decreased by 10 percent. Given a fixed labor demand curve, we can conclude that


A) the labor demand curve is upsloping.
B) labor demand is elastic.
C) labor demand is inelastic.
D) the coefficient of elasticity of labor demand is equal to 1.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

The marginal revenue product curve for an input is downsloping because of the law of diminishing returns.

A) True
B) False

Correct Answer

verifed

verified

Refer to the table. How many units of the resource would the profit-maximizing firm use if the price of the resource was $18.00? A) 1 B) 2 C) 3 D) 4 Refer to the table. How many units of the resource would the profit-maximizing firm use if the price of the resource was $18.00?


A) 1
B) 2
C) 3
D) 4

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

The case of ATMs and bank tellers illustrates that


A) capital is primarily a substitute for labor.
B) capital is, overall, a complement for labor, not a substitute.
C) capital and labor are almost always used in fixed proportions.
D) technological innovation is generally detrimental to employment.

E) B) and C)
F) A) and C)

Correct Answer

verifed

verified

A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired, 32 when two workers are hired, 37 when three are hired, and 40 when four are hired. The farmer's product sells for $3.50 per unit, and the wage rate is $17 per worker. What is the farmer's profit-maximizing output?


A) 40
B) 32
C) 20
D) 37

E) None of the above
F) A) and B)

Correct Answer

verifed

verified

Which of the following increases in labor demand is due to a change in the product demand?


A) Access to computers increases the productivity of mail order businesses, thus increasing the demand for their workers.
B) Tourism increases in popularity, increasing the demand for workers at tourist resorts.
C) A decrease in the price of trucks decreases the cost of transporting goods, thus increasing the demand for truckers.
D) A change in work rules increases output per worker in the auto industry, thus increasing the demand for autoworkers.

E) C) and D)
F) A) and B)

Correct Answer

verifed

verified

A cost-minimizing firm using two inputs, x and y, will employ inputs so that


A) MP x = MP y.
B) Pₓ / MP y = Pᵧ / MP x.
C) MP x/ Pₓ = MP y / Pᵧ .
D) Pₓ = Pᵧ .

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Other things being the same, if the demand for labor is inelastic,


A) decreases in wage rates will result in greater payrolls.
B) increases in wage rates will result in greater payrolls.
C) increases in wage rates will result in smaller payrolls.
D) decreases in wage rates will increase both employment and worker incomes.

E) None of the above
F) All of the above

Correct Answer

verifed

verified

A firm is both hiring labor and selling output in purely competitive markets and is maximizing profits. It is currently operating in the elastic range of its MRP curve. If the wage rate increases, its total spending on wages at the new equilibrium will


A) be larger.
B) be smaller.
C) be unchanged.
D) change in an undetermined direction.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Harry owns a barbershop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per day. The MRP of the second barber is


A) 18 haircuts.
B) $108.
C) 42 haircuts.
D) $126.

E) A) and B)
F) All of the above

Correct Answer

verifed

verified

The data in the table reveal that A) the firm is selling its product in a purely competitive market. B) the firm is selling its product in an imperfectly competitive market. C) there is no level of output at which this firm can operate at a profit. D) the firm is hiring labor in an imperfectly competitive market. The data in the table reveal that


A) the firm is selling its product in a purely competitive market.
B) the firm is selling its product in an imperfectly competitive market.
C) there is no level of output at which this firm can operate at a profit.
D) the firm is hiring labor in an imperfectly competitive market.

E) All of the above
F) None of the above

Correct Answer

verifed

verified

Showing 101 - 120 of 359

Related Exams

Exam 1

Limits, Alternatives, and Choices

107 Questions

Exam 2

The Market System and the Circular Flow

287 Questions

Exam 3

Demand, Supply, and Market Equilibrium

151 Questions

Exam 4

Market Failures Caused by Externalities Asymmetric Information

229 Questions

Exam 5

Public Goods, Public Choice, and Government Failure

268 Questions

Exam 6

Elasticity

399 Questions

Exam 7

Utility Maximization

358 Questions

Exam 8

Behavioral Economics

311 Questions

Exam 9

Businesses and the Costs of Production

445 Questions

Exam 10

Pure Competition in the Short Run

342 Questions

Exam 11

Pure Competition in the Long Run

250 Questions

Exam 12

Pure Monopoly

407 Questions

Exam 13

Monopolistic Competition

279 Questions

Exam 14

Oligopoly and Strategic Behavior

362 Questions

Exam 15

Technology, RD, and Efficiency

309 Questions

Exam 17

Wage Determination

168 Questions

Exam 18

Rent, Interest, and Profit

305 Questions

Exam 19

Natural Resource and Energy Economics

337 Questions

Exam 20

Public Finance: Expenditures and Taxes

336 Questions

Exam 21

Antitrust Policy and Regulation

264 Questions

Exam 22

Agriculture: Economics and Policy

265 Questions

Exam 23

Income Inequality, Poverty, and Discrimination

324 Questions

Exam 24

Health Care

280 Questions

Exam 25

Immigration

259 Questions

Exam 26

International Trade

347 Questions

Exam 27

The Balance of Payments, Exchange Rates, and Trade Deficits

318 Questions

Exam 28

The Economics of Developing Countries

277 Questions

Show Answer