Chapter 14

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Author:
Anonymous
ID:
182006
Filename:
Chapter 14
Updated:
2012-11-06 04:05:48
Tags:
Resource Demand
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Description:
Labour market, resources
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  1. Assuming a firm is selling its output in a purely competitive market, its resource demand schedule can be determined by:
    A. Multiplying total product by product price.
    B. Dividing total revenue by marginal product.
    C. Comparing marginal product with various possible input prices.
    D. Multiplying marginal product by product price.
    D. Multiplying marginal product by product price.
    (this multiple choice question has been scrambled)
  2. Resource pricing is important because:
    A. Resource prices are a major determinant of money incomes.
    B. Resource prices allocate scarce resources among optional uses.
    C. Resource prices, along with resource productivity, are important to firms in minimising their costs.
    D. Of all of the reasons.
    D. Of all of the reasons.
    (this multiple choice question has been scrambled)
  3. The marginal revenue product schedule is:
    A. Up-sloping.
    B. The firm's resource supply schedule.
    C. The same, whether the firm is selling in a purely competitive or imperfectly competitive market.
    D. The firm's resource demand schedule.
    D. The firm's resource demand schedule.
    (this multiple choice question has been scrambled)
  4. Other things being equal, the resource-demand curve of an imperfectly competitive seller will.
    A. Lie below its marginal-revenue-product curve.
    B. Not be subject to diminishing marginal productivity.
    C. Be less elastic than that of a purely competitive seller.
    D. Be more elastic than that of a purely competitive seller.
    C. Be less elastic than that of a purely competitive seller.
    (this multiple choice question has been scrambled)
  5. Marginal revenue product measure the:
    A. Increase in total resource cost that results from the hire of one extra unit of a resource.
    B. Amout by which the extra production of one more worker increases a firm's total revenue.
    C. Decline in product price that a firm must accept in order to sell the extra output of one more worker.
    D. Increase in total revenue that results from the production of one more unit of a product.
    B. Amount by which the extra production of one more worker increases a firm's total revenue.
    (this multiple choice question has been scrambled)
  6. Which of the following statements best illustrates the concept of 'derived demand'?
    A. A decline in the price of margarine will reduce the demand for butter.
    B. When the price of petrol goes up, the demand for motor oil will decline.
    C. As income goes up, the demand for farm products will increase by a smaller relative amount.
    D. A decline in the demand for shoes will cause the demand for leather to decline.
    D. A decline in the demand for shoes will cause the demand for leather to decline.
    (this multiple choice question has been scrambled)
  7. Assume labour is the only variable input and that an additional input of labour increases total output from 72 to 78 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker:
    A. is $72
    B. is $12
    C. is $36
    D. Cannot be determined from the information given.
    C. is $36.
    (this multiple choice question has been scrambled)
  8. Jones owns a barber shop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per 8-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per 8-hour day. Refer to the above information. The MRP of the second barber:
    A. cannot be determined from the information given.
    B. is $42
    C. is $18
    D. is $108
    D. is $108.
    (this multiple choice question has been scrambled)

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