{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# Econ 1 Final F04 Answers - DARTMOUTH COLLEGE ECONOMICS 1...

This preview shows pages 1–3. Sign up to view the full content.

D ARTMOUTH C OLLEGE P ROFESSOR J ESSE G IUMMO E CONOMICS 1: P RICE S YSTEM F ALL 2004 S OLUTIONS F INAL E XAM F ALL 2004: 140 POINTS P ART I: 25 M ULTIPLE -C HOICE Q UESTIONS (50 POINTS ) 1. If the supply of labor decreases, which of the following events will occur? a) The wage rate will fall and firms will increase employment up until the point where MRP equals the new wage rate. b) The wage rate will fall and firms will decrease employment to the point where MRP equals the new wage rate. c) The wage rate will increase and firms will decrease employment to the point where MRP equals the new wage rate. d) The wage rate will increase and firms will increase employment up until the point where MRP equals the new wage rate. Answer C 2. Hanover Potato Chips is a perfectly competitive firm currently employing 30 workers. The marginal revenue product of the 30 th worker is \$7.00 per hour. The wage rate is \$8.00 per hour. To increase profits, this firm should Answer A 3. If a firm could increase profits by hiring less labor and more capital, then Answer A 4. The Package store hires workers to wrap packages. The store sells this service for \$5. The marginal revenue product of the store 5 th worker is \$50. The marginal product of the 5 th worker is a) 0.1 packages b) 1 package c) 10 packages d) indeterminate from this information Answer C

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
D ARTMOUTH C OLLEGE P ROFESSOR J ESSE G IUMMO E CONOMICS 1: P RICE S YSTEM F ALL 2004 5. Assume that automobiles are a normal good. An increase in income will Answer C
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 17

Econ 1 Final F04 Answers - DARTMOUTH COLLEGE ECONOMICS 1...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online