Question 1 A firm\'s marginal revenue product curve is downward sloping, which m

Question

Question 1 A firm's marginal revenue product curve is downward sloping, which means the derived demand curve for an input is downward sloping. Answer True False 2 points Question 2 A profit-maximizing firm will hire extra units of a resource when Answer marginal resource cost exceeds marginal revenue product marginal resource cost is equal to marginal revenue product marginal resource cost is less than marginal revenue product temporary resource price differentials exceed the marginal resource cost the average resource cost and marginal resource cost curves are equal 2 points Question 3 Economic rent is that portion of a resource's total earnings that exceeds its opportunity cost. Answer True False 2 points Question 4 Featherbedding shifts the marginal revenue product of labor curve to the right. Answer True False 2 points Question 5 Featherbedding ultimately results in greater worker efficiency and therefore greater productivity and higher wages. Answer True False 2 points Question 6 If a firm is experiencing diminishing marginal returns, Answer total output decreases as all resources are increased total output decreases as all resources are decreased total output decreases as one variable resource is increased, other things constant additional increments of output diminish as one variable resource is increased, other things constant additional increments of output diminish as all variable resources are increased 2 points Question 7 If a person's labor supply curve is positively sloped, the income effect outweighs the substitution effect. Answer True False 2 points Question 8 If leisure is a normal good, then a decrease in income __________ the time allocated to __________. Answer decreases; market work decreases; leisure decreases; nonmarket work increases; leisure increases; market work, nonmarket work, and leisure time 2 points Question 9 If the wage is below the marginal revenue product, then a profit-maximizing firm will Answer employ more workers employ fewer workers see an increase in its demand for labor see an increase in its supply of labor see a fall in its demand for labor 2 points Question 10 Jamal maximizes utility by allocating his time among leisure, market work, and household work so that Answer expected marginal utility is equal among all three expected total utility per hour is equal among all three expected marginal utility per hour is equal among all three the maximum amount of goods and services can be acquired expected total utility of each use is equal 2 points Question 11 Other things equal, the supply of labor will be lower to a job that Answer offers more prestige offers valuable on-the-job training requires advanced skills or education provides a climate-controlled work environment allows for flexible work schedules 2 points Question 12 People supply their resources to the highest-paying alternative, even if working conditions are not equally attractive. Answer True False 2 points Question 13 People who are more productive in market work Answer produce less for themselves spend more time engaged in nonmarket work work fewer hours in market work and enjoy more leisure are more likely to acquire skills and education through nonmarket work are attracted to market employment at lower wages 2 points Question 14 Ten cases of spring water are sold for $6 each, and the marginal product of the last unit of labor is 5. If the price of a case increases from $6 to $8, then the marginal revenue product of the last unit of labor would Answer decrease by $10 increase by $40 decrease by $30 increase by $10 not change 2 points Question 15 The demand for labor curve bends backward whenever the income and substitution effects work in opposite directions. Answer True False 2 points Question 16 The marginal resource cost of a resource is the additional cost of employing one additional unit of the resource. Answer True False 2 points Question 17 The market price of output affects Answer the supply of the resources used to produce it the demand for the resources used to produce it the marginal product of the resources used to produce it the marginal resource cost of the resources used to produce it the total cost of the resources used to produce it 2 points Question 18 The market supply curve of labor is Answer upward sloping perfectly inelastic upward sloping at first but then bends backward downward sloping perfectly elastic 2 points Question 19 The union participation rate in the United States is Answer lowest among service workers in the private sector highest among service workers in the private sector lowest among service workers in the public sector highest in heavy industry highest in high-technology industries 2 points Question 20 Union membership has continued to grow faster than the labor force in the United States since World War II. Answer True False 2 points Question 21 Union membership over the last five decades has Answer grown at the same rate as the labor force become much more attractive and has grown more rapidly than the labor force become much more attractive grown more rapidly than the labor force declined 2 points Question 22 Union wages in the United States are, on average, Answer equal to nonunion wages twice as high as nonunion wages half of nonunion wages 15 percent higher than nonunion wages 50 percent higher than nonunion wages 2 points Question 23 Which of the following explains the recent decline in union membership in the United States? Answer smaller government safety nets slower technological change the change from a manufacturing to a service-based economy increasing market concentration none of the above 2 points Question 24 Which of the following represents the resource supply curve faced by a firm that hires resources in a perfectly competitive resource market? Answer its ATC curve its AVC curve its MRP curve its MRC curve its AFC curve

Explanation / Answer

1.true; 2.MC

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.