Chapter 26 Flashcards
The demand for goos and services is called ________ demand, while the demand for resources is called _______demand
C. final ;derived
Which statement is true?
A. A change in derived demand brings about a change in final demand.
B. A change in final demand brings about a change in derived demand.
C. A rise in final demand is associated with a decline in derived demand.
D. None of these statement is true.
B. A change in final demand brings about a change in derived demand.
The additional revenue obtained by selling the output produced by one more unit of a resource is its
B. Marginal revenue product
In general, the MRP __________as output increases.
A. Declines
Productivity is _______per unit of ________.
A. output; input
The firm will rent more and more lnad until the rent and the __________ of the last unit of land hired are equal.
B. MRP
Workers in one country are more productive than workers in another country because
B. they have more complementary factors to work with
The demand for resources is based on
C. both 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
B. mraginal physical product
A rise in the wage rate would lead to a movement
C. up the MRP curve and a decline in the number of workers hired.
The firm’s demand schedule for a resource is its _______schedule.
B. MRP
A firm will operate a that loin where ________is equal to 1.
B. 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 equals
C. its price
If the MRP of the last worker hired is lower than the wage rate the firm has
A. hired too many workers
The most effective way to increase the productivity of labor would be to
A. increase capital
As output rises
B. both marginal revenue product and marginal physical products fall.
How much of a resource a firm will purchase depends on
E. All of the choices are correct
A fall in the demand for the final product brings about
B. a fall in derived demand
A firm will continue hiring labor as long as the MRP of labor __________the amrket wage rate.
D. is greater than
The maimum units of the input you would possibly hire would be
C. 5
An increase in the price of crude oil, a basic input into the production of gasoline, is likely to
B. put upward pressure on the price of gasoline
A decline in the wage rate would
A. raise the quantiy of labor demanded
An increase in the demand for steel occurs. As a result, firms in the steel industry will
D.increase their demand for capital
If the output per acre of land triples, then the productivity of an acre of lnad
E. has tripled
Derived demand is a demand for
C. resources
