1 - 1. The demand for airline pilots results from the...

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1. The demand for airline pilots results from the demand for air travel. This fact is an example of: A. resource substitutability. B. rising marginal resource cost. C. elasticity of resource demand. D. the derived demand for labor. 2. The demand for a resource depends primarily on: A. the supply of that resource. B. the demand for the product or service that it helps produce. C. the price of that input. D. the elasticity of supply of substitute inputs. 3. The MRP curve for labor: A. intersects the firm's labor demand curve from above. B. is the firm's labor demand curve. C. lies below the firm's labor demand curve. D. lies above the firm's labor demand curve. 4. Marginal product is: A. the output of the least skilled worker. B. a worker's output multiplied by the price at which each unit can be sold. C. the amount an additional worker adds to the firm's total output. D. the amount any given worker contributes to the firm's total revenue. 5. Assume that a restaurant is hiring labor in an amount such that the MRC of the last worker is $16 and her MRP is $12. On the basis of this information we can say that: A. profits will be increased by hiring additional workers. B. profits will be increased by hiring fewer workers. C. marginal revenue product must exceed average revenue product. D. the restaurant is maximizing profits. 6. The MRP curve is the resource demand curve for: A. neither the purely competitive nor the imperfectly competitive seller. B. the imperfectly competitive seller, but not the purely competitive seller. C. the purely competitive seller, but not the imperfectly competitive seller. D. both the purely competitive and imperfectly competitive seller. 7. If two resources are highly substitutable for one another:
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A. a decrease in the price of one will increase unit costs of production. B. an increase in the price of one will increase the demand for the other. C. an increase in the price of one will reduce the demand for the other. D. a decline in the price of one will increase the demand for the other. 8. Elasticity of resource demand is measured by the: A. absolute change in resource quantity demanded divided by the absolute change in resource price. B. percentage change in resource quantity demanded divided by the percentage change in resource price. C. absolute change in resource price divided by the absolute change in resource quantity demanded. D. percentage change in resource price divided by the percentage change in resource quantity demanded. 9. The labor demand curve of a purely competitive seller: A. slopes downward because the elasticity of demand is always less than unity. B. slopes downward because of diminishing marginal productivity. C. is perfectly elastic at the going wage rate.
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1 - 1. The demand for airline pilots results from the...

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