econ - problem set 8_ProblemSet

econ - problem set 8_ProblemSet - Review Assessment:...

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Unformatted text preview: Review Assessment: Problem Set 8 Name: Problem Set 8 Status: Completed Score: 60 out of 100 point(s) Instructions: Question 1 Multiple Choice 5 of 5 point(s) The value of the marginal product of any input is equal to the marginal product of that input multiplied by the Your Answer: market price of the output. Correct Answer: market price of the output. Feedback: market price of the output. Question 2 Multiple Choice 0 of 5 point(s) For the profit-maximizing competitive firm, the value-of-marginal-product curve is Your Answer: always rising. Correct Answer: the labor demand curve. Feedback: the labor demand curve. Question 3 Multiple Choice 5 of 5 point(s) Use the following figure to answer the following questions. Figure 18-2 Refer to Figure 18-2. If the price of apples increases, the wage will Your Answer: increase and more apple pickers will be hired. Correct Answer: increase and more apple pickers will be hired. Feedback: increase and more apple pickers will be hired. Question 4 Multiple Choice 0 of 5 point(s) Because of diminishing returns, a factor in scarce supply has Your Answer: a low marginal product and a high rental price. Correct Answer: a high marginal product and a high rental price. Feedback: a high marginal product and a high rental price. Question 5 Multiple Choice 5 of 5 point(s) Diminishing marginal product serves to have what effect on the shape of the production function? Your Answer: The slope of the production function decreases as the quantity of input increases. Correct Answer: The slope of the production function decreases as the quantity of input increases. Feedback: The slope of the production function decreases as the quantity of input increases. Question 6 Multiple Choice 5 of 5 point(s) A competitive firm sells its output for $45 per unit. It employs 30 workers, and the marginal product of the 30th worker is 4 units of output per day. It pays its workers a wage of $150 per day. Your Answer: The firm's profit would increase if it hired a 31st worker. Correct Answer: The firm's profit would increase if it hired a 31st worker. Feedback: The firm's profit would increase if it hired a 31st worker. Question 7 Multiple Choice 5 of 5 point(s) Which of the following events would shift the labor supply curve? Your Answer: All of the above are correct. Correct Answer: All of the above are correct. Feedback: All of the above are correct. Question 8 Multiple Choice 5 of 5 point(s) The shape of the value-of-marginal-product curve is most easily explained by Your Answer: diminishing marginal product. Correct Answer: diminishing marginal product. Feedback: diminishing marginal product. Question 9 Multiple Choice 0 of 5 point(s) If workers respond to an increase in the opportunity cost of leisure by taking more leisure, then their labor supply curve is Your Answer: upward sloping....
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This note was uploaded on 06/13/2011 for the course ECON 2252 taught by Professor Byrd during the Spring '11 term at Troy.

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econ - problem set 8_ProblemSet - Review Assessment:...

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