Question 1

The marginal revenue product of a resource is equal to the value of marginal product when the product produced by the resource is sold in

Accepted Answer

A)   a competitive price-taker market.
B)   a competitive price-searcher market.
C)   an oligopolistic market.
D)   a monopolistic industry.E) B) and C)
F) None of the above

Question 2

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

Question 3

The derived demand and, consequently, the demand curve for labor are determined by

Accepted Answer

A)   labor's wage.
B)   labor's marginal revenue.
C)   the marginal cost of the input labor.
D)   labor's marginal revenue product.E) A) and C)
F) A) and D)

Question 4

Other things equal, when the supply of workers is scarce, one would predict that market wages would be

Accepted Answer

A)   relatively high.
B)   relatively low.
C)   determined solely by factors that affect demand.
D)   determined outside the domain of economic theory.E) A) and D)
F) All of the above

Question 5

A decrease in the demand for a final product will cause

Accepted Answer

A)   a decrease in demand for the resources used to produce the good.
B)   an increase in demand for the resources used to produce the good.
C)   firms to expand production of the good.
D)   an increase in the supply of resources used to produce the good.E) B) and D)
F) B) and C)

Question 6

The demand for accountants is a result of the complicated tax code. This is an example of

Accepted Answer

A)   dependent demand.
B)   resource demand.
C)   derived demand.
D)   none of the above.E) A) and B)
F) C) and D)

Question 7

Generally, the supply of a resource in the short run will be

Accepted Answer

A)   more elastic than in the long run.
B)   less elastic than in the long run.
C)   equally elastic as the supply of the resource in the long run.
D)   directly related to the elasticity of demand for the product that the resource helps produce.E) A) and B)
F) B) and D)

Question 8

An increase in the demand for a resource

Accepted Answer

A)   will cause the price of that resource to fall.
B)   may be the result of a decrease in the demand for products utilizing this resource.
C)   will cause the price of the resource to fall by a smaller amount in the short run than in the long run.
D)   will increase the price of the resource and thereby increase the incentive of potential suppliers to provide the resource in the future.E) B) and C)
F) A) and D)

Question 9

Economists refer to expenditures on training, education, and skill development designed to increase the productivity of an individual as

Accepted Answer

A)   overhead expenditures.
B)   investments in human capital.
C)   non-exhaustive expenditures.
D)   social capital.E) B) and C)
F) B) and D)

Question 10

Figure 12-1
 
-If Figure 12-1 indicated the short-run and long-run supply curves for a resource, which of the following would probably be the long-run supply curve of the resource?

Accepted Answer

A)   Q₂
B)   Q₃
C)   Sb
D)   SaE) None of the above
F) B) and D)

Question 11

Figure 12-2
 
-If an unanticipated increase in demand in Figure 12-2 shifts the demand for accountants from D₁ to D₂, how will the higher level of demand influence the wages of accountants in the short run and the long run?

Accepted Answer

A)   In the short run, wages will increase to W2, but the wage increase will be smaller in the long run.
B)   In the short run, wages will be less than W2, but in the long run, they will rise to W2.
C)   In the short run, wages will increase to W2, and in the long run, they will be even higher than W2.
D)   Employment will increase, but the higher level of demand will not alter the wages of accountants.E) None of the above
F) All of the above

Question 12

If the demand for workers with doctorate degrees in economics increases, we would expect

Accepted Answer

A)   the wages of economists to increase in the short run and the number of economists employed to increase in the long run.
B)   the supply of economists to increase in the short run and their wages to rise in the long run.
C)   a rapid increase in the supply of economists, causing wages to remain constant.
D)   the wages of economists to decrease in the short run and the number of economists employed to increase in the long run.E) A) and D)
F) B) and C)

Question 13

Which one of the following labor resources will likely have the most inelastic supply schedule in the short run?

Accepted Answer

A)   filling station attendants
B)   sales clerks
C)   construction laborers
D)   dentistsE) B) and C)
F) A) and B)

Question 14

Table 12-1
The following table indicates the reductions in total losses due to theft if a jewelry store hires additional security guards.
 
-Refer to Table 12-1. If the security guards can be hired for $75 per day, how many guards should the shop hire?

Accepted Answer

A)   two
B)   three
C)   four
D)   five
E)   sixF) A) and D)
G) All of the above

Question 15

If a college education did not increase worker productivity,

Accepted Answer

A)   no one would go to college.
B)   the earnings of workers with a college education would tend to be the same as for workers without a college degree.
C)   the earnings of workers with a college education would still be higher than for those without a college degree.
D)   the earnings of workers with a college education would be lower than for those without a college degree.E) B) and D)
F) B) and C)

Question 16

The demand for a factor of production depends largely on the

Accepted Answer

A)   supply of the factor.
B)   supply of other factors of production.
C)   demand for other factors of production.
D)   demand for the products that it helps to produce.E) C) and D)
F) B) and C)

Question 17

Why is it more expensive to acquire a new house in an urban area than in a rural area if the costs of labor and building materials are the same?

Accepted Answer

A quick glance to the demand side might ...

Question 18

Farmer Ted owned a worn-out piece of farmland for growing cotton, which he had been unable to rent for years. Suddenly he was getting offers from cotton farmers to lease his land. What is the most likely explanation of this?

Accepted Answer

A)   The price of cotton went down.
B)   The physical productivity of the land went up.
C)   Taxes on the land went up.
D)   The price of cotton went up.E) A) and B)
F) None of the above

Question 19

Suppose a change in technology increases the marginal product of labor. The result is

Accepted Answer

A)   a downward movement along the demand for labor curve.
B)   a rightward shift in the demand for labor curve.
C)   a leftward shift in the demand for labor curve.
D)   an upward movement along the demand for labor curve.E) B) and D)
F) A) and D)

Question 20

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

Exam 25: The Supply of and Demand for Productive Resources

Economists refer to expenditures on training, education, and skill development designed to increase the productivity of an individual as

Correct AnswerverifiedShow Answer

Farmer Ted owned a worn-out piece of farmland for growing cotton, which he had been unable to rent for years. Suddenly he was getting offers from cotton farmers to lease his land. What is the most likely explanation of this?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the demand for workers with doctorate degrees in economics increases, we would expect

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Figure 12-1 -If Figure 12-1 indicated the short-run and long-run supply curves for a resource, which of the following would probably be the long-run supply curve of the resource?

Correct AnswerverifiedShow Answer

Table 12-1 The following table indicates the reductions in total losses due to theft if a jewelry store hires additional security guards. -Refer to Table 12-1. If the security guards can be hired for $75 per day, how many guards should the shop hire?

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

Why is it more expensive to acquire a new house in an urban area than in a rural area if the costs of labor and building materials are the same?

Correct AnswerverifiedA quick glance to the demand side might ...View AnswerShow Answer

Generally, the supply of a resource in the short run will be

Correct AnswerverifiedShow Answer

Which one of the following labor resources will likely have the most inelastic supply schedule in the short run?

Correct AnswerverifiedShow Answer

The demand for accountants is a result of the complicated tax code. This is an example of

Correct AnswerverifiedShow Answer

An increase in the demand for a resource

Correct AnswerverifiedShow Answer

The derived demand and, consequently, the demand curve for labor are determined by

Correct AnswerverifiedShow Answer

Suppose a change in technology increases the marginal product of labor. The result is

Correct AnswerverifiedShow Answer

A decrease in the demand for a final product will cause

Correct AnswerverifiedShow Answer

Figure 12-2 -If an unanticipated increase in demand in Figure 12-2 shifts the demand for accountants from D₁ to D₂, how will the higher level of demand influence the wages of accountants in the short run and the long run?

Correct AnswerverifiedShow Answer

The demand for a factor of production depends largely on the

Correct AnswerverifiedShow Answer

The marginal revenue product of a resource is equal to the value of marginal product when the product produced by the resource is sold in

Correct AnswerverifiedShow Answer

If a college education did not increase worker productivity,

Correct AnswerverifiedShow Answer

Other things equal, when the supply of workers is scarce, one would predict that market wages would be

Correct AnswerverifiedShow Answer

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A quick glance to the demand side might ...
View Answer

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