The demand for goods and services is called _______________demand, while the demand for resources is called ____________ demand.
- derived; derived
- final; final
- final; derived
- derive; final
final; derived
Which statement is true?
- A change in derived demand brings about a change in final demand
- A change in final demand brings about a change in derived demand
- A rise in final demand is associated with a decline in derived demand
- None of these statements is true
A change in final demand brings about a change in derived demand
The additional revenue obtained by selling the ouput produced by one more unit of a resource is its
- marginal physical product
- marginal revenue product
- final demand
- average revenue product
marginal revenue product
In general, the MRP ______________________ as output increases.
- declines
- rises
- stays the same
declines
Productivity is ________________________ per unit of _______________________
- output; input
- input;output
- labor; capital
- None of the choices
output; input
The firm will rent more and more land until the rent and the ______________ of the last unit of land hired are equal
- marginal physical product
- MRP
- output
MRP
Workers in one country are more productive than workers in another country because
- they have fewer complementary factors to work with
- they have more complementary factors to work with
- they are better motivated and paid
they have more complementary factors to work with
The demand for resources is based on
- just the demand for the final product
- just the productivity of that resource
- both the demand for the final product and the productivity of the resource
- neither the demand for the final product nor the productivity of the resource
borth the demand for the final product and the productivity of the resource
The additional ouput that one additional input of labor is responsible for is its
- marginal revenue product
- marginal physical product
- average revenue product
- average physical product
marginal physcial product
A rise in the wage rate would lead to a movement
- down the MRP curve and a rise in the number of workers hired
- down the MRP curve and a decline in the number of workers hired
- up the MRP curve and a decline in the number of workers hired
- up the MRP curve and rise in the number of workers hired
up the MRP curve and a decline in the number of workers hired
The firm’s demand schedule for a resource is its ________________schedule.
- MPP
- MRP
- total revenue
- output
MRP
A firm will operate at that point where ___________________ is equal to 1.
- the marginal physical product of capital/price of capital
- the MRP of capital/price of capital
- the price of capital/marginal physical product of capital
- the price of capital/MRP of capital
The MRP of capital/price of capital
A firm will keep hiring more and more of a resource up to the point where its MRP is equal to
- one
- its MPP
- its price
- its output
its price
If the MRP of the last worker hired is lower than the wage rate, the firm has
- hired too many workers
- hired too few workers
- hired the right number of workers
hired too many workers
The most effective way to increase the productivity of labor would be to
- increase capital
- increase labor
- lower capital
- shift workers from white-collar work to blue collar work
increase capital
As output rises
- both marginal revenue product and marginal physical product rise.
- both marginal revenue product and marginal physical product fall
- marginal revenue product rises and marginal physical product falls
- marginal revenue product rises and marginal physical product rises
both marginal revenue product and marginal physical product fall
How much of a resoruce a firm will purchase depends on
- the price of that resource
- the productivity of that resource
- the selling price of the final product that the resoruce helps to produce
- the selling prices of close subsittutes of the final product
- All of the choices are correct
All of the choices are correct
A fall in the demand for the final product brings about
- a rise in derived demand
- a fall in derived demand
- no change in derived demand
a fall in derived demand
A firm will continue hiring labor as long as the MRP labor _____________________ the market wage rate
- is equal to
- determines
- is less than
- is greater than
is greater than
The maximum units of input you would possibly hire would be:
- 3
- 4
- 5
- 6
- 7
5 (five)
An increase in the price of crude oil, a basic input into the production of gasoline is likely to
- put downward pressure on the price of gasoline
- put upward pressure on the price of gasoline
- decrease the demand for gasoline
- increase the quantity of gasoline demanded
put upward pressure on the price of gasoline
A decline in the wage rate would
- raise the quantity of labor demanded
- lower the quantity of labor demanded
- increase the demand for labor
- decrease the demand for labor
raise the quantity of labor demanded
An increase in the demand for steel occurs. As a result firms in the steel industry will
- experience no change in their demand for capital
- decrease their demand for capital
- decrease both output and their demand for capital
- increase their demand for capital
increase their demand for capital
If the output per acre of land triples, then the productivity of an acre of land
- has been cut by two-thirds
- has been cut by one-third
- has stayed about the same
- has increased
- has tripled
has tripled
