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Q12 Winnie - Question 1 If the price of capital declines...

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Question 1 0 out of 1 points If the price of capital declines, the consequent output effect would be: Selected Answer: [None Given] Correct Answer: greater, the more elastic the demand for the product. Question 2 0 out of 1 points Which of the following statements best illustrates the concept of derived demand? Selected Answer: [None Given] Correct Answer: A decline in the demand for shoes will cause the demand for leather to decline. Question 3 0 out of 1 points Answer the next question(s) on the basis of the following information. A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. Refer to the above information. What is the farmer's profit-maximizing output? Selected Answer: [None Given] Correct Answer: 37 Question 4 0 out of 1 points If a firm is employing quantities of resources J and K so that MRP J / P J = MRP K / P K = 1, then: Selected Answer: [None Given] Correct Answer: MP J / P J = MP K / P K . Question 5 0 out of 1 points A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm:
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Selected Answer: [None Given] Correct Answer: should hire more labor because this will increase profits. Question 6 0 out of 1 points A manufacturer using both capital and labor decides to use more labor and less capital because of an increase in the price of capital. This is likely the result of: Selected Answer: [None Given] Correct Answer: capital and labor being substitute inputs. Question 7 0 out of 1 points Answer the next question(s) on the basis of the following information: Jones owns a barber shop and charges $6 per haircut. By hiring one barber at $10 per hour the shop can provide 24 haircuts per 8-hour day. By hiring a second barber at the same wage rate the shop can now provide a total of 42 haircuts per day. Refer to the above information. The MRP of the second barber: Selected Answer: [None Given] Correct Answer: is $108. Question 8 0 out of 1 points The demand for airline pilots results from the demand for air travel. This fact is an example of: Selected Answer: [None Given] Correct Answer: the derived demand for labor. Question 9 0 out of 1 points Assume that the coefficient of elasticity of product demand is .5 in industry A and is 3.2 in industry B. Other things equal, labor demand will be:
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Selected Answer: [None Given] Correct Answer: more elastic in industry B than in A. Question 10 0 out of 1 points Which of the following occupations is not among the ten projected fastest growing U.S. occupations in terms of percentage increases? Selected Answer: [None Given] Correct Answer: school teachers Question 1 0 out of 1 points If MP a / P a = MP b / P b and MRP a / P a = MRP b / P b >1, this firm is: Selected Answer: [None Given] Correct Answer: producing its output with the least costly combination of resources, but is not producing the profit-maximizing output.
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