US15L2
1
The income earned by a productive resource is equal to the _____________________________.
marginal revenue multiplied by the marginal product of the resource
price of the resource multiplied by the quantity of the resource used
marginal product of the resource divided by the price of the good produced by the resource
price of the resource multiplied by the marginal product of the resource
2
An increase in the supply of a productive resource will _______ the price of the resource, _______ the quantity used of the resource, and the income will _______.
decrease; increase; decrease
increase; decrease; either increase or decrease
increase; increase; increase
decrease; increase; either increase or decrease
3
As the quantity of labor increases in the short run, labor's _______ diminishes.
marginal cost
average cost
marginal revenue product
marginal revenue
4
In the short run, ___________________ increases the quantity of labor demanded by the firm.
technological advance that decreases the marginal product of labor
a decrease in the wage rate
an increase in the prices of other factors used by the firm
an increase in the firm's output price
5
The elasticity of the demand for labor depends on all of the following variables except _________________.
the substitutability of capital for labor
the elasticity of demand for the good
the equilibrium wage rate
labor intensity of the production process
6
If the wage rate paid in the fast-food outlets in a small town is greater than the reservation wage of all the teenagers in the town and less than the reservation wage of all the adults, then the fast-food outlets will hire __________________.
only adults
some adults and some teenagers
only teenagers
mostly adults and a few teenagers
7
The _______ effect means that, other things remaining the same, the higher the wage rate, the more time people will spend working and the less time people will spend pursuing leisure.
income
price
substitution
labor
8
At high wage rates, the labor supply curve bends backward because the _______ effect dominates the _______ effect.
income; price
substitution; price
income; substitution
substitution; income
9
As the interest rate _______, the amount of saving ____________ and the quantity of capital supplied _____________.
increases; decreases; decreases
decreases; increases; decreases
increases; increases; increases
increases; decreases; increases
10
When the supply of a resource is perfectly inelastic, the resource's income is _____________________.
entirely opportunity cost
a combination of economic rent and opportunity cost
entirely economic rent
mostly opportunity cost and some economic rent
Please enter your name and press the SEND button