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Pre Test 3 Fall 2010 Student

# Pre Test 3 Fall 2010 Student - Pre Test 3 Fall 2010...

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Pre Test 3 Fall 2010 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following best describes marginal revenue product (MRP)? a. MRP is the level of total revenue generated by total employment of labor and capital. b. MRP is the change in total revenue caused by a one-unit increase in output. c. MRP is the change in total revenue caused by a one-unit increase in a variable input such as labor. d. MRP is total revenue divided by the total quantity of a variable input used. ____ 2. The increase in a firm's total revenues resulting from hiring an additional unit of labor is known as the marginal: a. product. b. revenue product. c. cost. d. none of the above. Exhibit 10-1 Labor and output data Labor Output 0 0 1 20 2 45 3 80 4 100 5 110 ____ 3. In Exhibit 10-1, the marginal product of the 3rd unit of labor is equal to: a. 80. b. 45. c. 35. d. 100. e. 25. ____ 4. In Exhibit 10-1, the marginal product of the 4th unit of labor is equal to: a. 80. b. 45. c. 35. d. 100. e. 20. ____ 5. One reason the supply of carpenters is greater than the supply of physicians is because: a. carpenters demand less income. b. physicians do not belong to a union. c. of differences in human capital. d. carpenters belong to unions.

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____ 6. Which of the following would be a human capital investment? a. On-the-job training programs. b. Health care programs. c. Formal education. d. All of the above. ____ 7. Suppose a change in technology increases the marginal product of labor. The result is a(an): a. downward movement along the demand for labor curve. b. rightward shift in the demand for labor curve. c. leftward shift in the demand for labor curve. d. upward movement along the demand for labor curve. ____ 8. A technological advance that increases the productivity of teachers can be expected to have what effects on the equilibrium labor market for teachers? a. Wages will rise, and quantity of labor will fall. b. Wages will rise, and quantity of labor will rise. c. Wages will fall, and quantity of labor will fall. d. Wages will fall, and quantity of labor will rise. e. Wages and quantity of labor will remain the same. ____ 9. Which of the following best describes gross domestic product (GDP)? a. The market value of all inputs used to produce all final goods and services in a nation during a period of time. b. The market value of all final goods and services produced in a nation during a period of time. c. The quantity of all goods and services produced in a nation during a period of time. d. The average price of all goods and serviced produced in a nation during a period of time. ____ 10. Which of the following spending is larger for U.S. GDP? a.
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Pre Test 3 Fall 2010 Student - Pre Test 3 Fall 2010...

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