Pre-Test Chap 12 e18 - Pre-Test Chap 12 e18 Student: _ 1....

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Pre-Test Chap 12 e18 Student: ___________________________________________________________________________ 1. Refer to the above table. The price of the product being produced by this resource: A. Is a constant $3 B. Is a constant $4 C. Varies from $2 to $6 D. Varies from $7 to $12 2. The demand for labor will decrease in response to: A. Increased productivity B. Better training of all laborers C. A decrease in the supply of labor D. Decreased demand in markets for consumer goods and services 3. Refer to the above table for a profit-maximizing firm. The price of the firm's product is $10 per unit and the wage rate is a constant $110 a day. How many workers will the firm hire, assuming purely competitive product and resource markets? A. 4 B. 5 C. 6 D. 7 4. If a factor of production has many close substitutes, we would expect that its price elasticity of demand would be: A. Unity B. Zero C. Greater than one D. Less than one, but greater than zero
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5. Derived demand is the demand: A. That arises because of monopoly control of resources in a market B. For a product based on the tastes and preferences of consumers C. Derived from consumer satisfaction with a product D. For a resource to produce a product 6. The demand for a productive resource is said to be "derived" because the demand for the factor: A. Depends on the demand for the product it is used to make B. Depends on the demand for a complementary factor C. Is derived from the state of the economy D. Is derived from government policy Use the following to answer questions 72-81 about the labor resource market for product X: 7. Refer to the above graph. What will shift D 1 to D 2 ? A. An increase in the price of a substitute input (if the output effect > substitution effect) B. An increase in the price of a substitute input (if the substitution effect > output effect) C. A decrease in the price of a substitute input (if the substitution effect > output effect) D. An increase in the price of a complementary resource Assume that the quantities of other resources the firm employs remain constant.
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8. Refer to the above table. If the firm's product sells for a constant $2 per unit, what is the marginal revenue product of the third unit of
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This note was uploaded on 05/23/2010 for the course ECON 101 taught by Professor Keep during the Spring '10 term at Glendale Community College.

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Pre-Test Chap 12 e18 - Pre-Test Chap 12 e18 Student: _ 1....

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