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Flashcards in Chapter 26 Deck (25)
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1
Q

The demand for goos and services is called ________ demand, while the demand for resources is called _______demand

A

C. final ;derived

2
Q

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.

A

B. A change in final demand brings about a change in derived demand.

3
Q

The additional revenue obtained by selling the output produced by one more unit of a resource is its

A

B. Marginal revenue product

4
Q

In general, the MRP __________as output increases.

A

A. Declines

5
Q

Productivity is _______per unit of ________.

A

A. output; input

6
Q

The firm will rent more and more lnad until the rent and the __________ of the last unit of land hired are equal.

A

B. MRP

7
Q

Workers in one country are more productive than workers in another country because

A

B. they have more complementary factors to work with

8
Q

The demand for resources is based on

A

C. both the demand for the final product and the productivity of the resource.

9
Q

The additional ouput that one additional input of labor is responsible for is its

A

B. mraginal physical product

10
Q

A rise in the wage rate would lead to a movement

A

C. up the MRP curve and a decline in the number of workers hired.

11
Q

The firm’s demand schedule for a resource is its _______schedule.

A

B. MRP

12
Q

A firm will operate a that loin where ________is equal to 1.

A

B. the MRP of capital/price of capital

13
Q

A firm will keep hiring more and more of a resource up to the point where its MRP equals

A

C. its price

14
Q

If the MRP of the last worker hired is lower than the wage rate the firm has

A

A. hired too many workers

15
Q

The most effective way to increase the productivity of labor would be to

A

A. increase capital

16
Q

As output rises

A

B. both marginal revenue product and marginal physical products fall.

17
Q

How much of a resource a firm will purchase depends on

A

E. All of the choices are correct

18
Q

A fall in the demand for the final product brings about

A

B. a fall in derived demand

19
Q

A firm will continue hiring labor as long as the MRP of labor __________the amrket wage rate.

A

D. is greater than

20
Q

The maimum units of the input you would possibly hire would be

A

C. 5

21
Q

An increase in the price of crude oil, a basic input into the production of gasoline, is likely to

A

B. put upward pressure on the price of gasoline

22
Q

A decline in the wage rate would

A

A. raise the quantiy of labor demanded

23
Q

An increase in the demand for steel occurs. As a result, firms in the steel industry will

A

D.increase their demand for capital

24
Q

If the output per acre of land triples, then the productivity of an acre of lnad

A

E. has tripled

25
Q

Derived demand is a demand for

A

C. resources