US15L1 - US15L1 1 The demand for a productive resource, not...

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US15L1 1 The demand for a productive resource, not for its own sake, but for use in the production of goods and services is called a _______________. goods and services demand production demand derived demand resource demand 2 Marginal revenue product is the ________________ when one additional unit of a labor is employed, all other things remaining the same. change in marginal revenue change in total revenue total revenue marginal revenue 3 The firm's demand for labor is derived from __________. the firm's marginal cost labor's marginal revenue product the firm's marginal revenue labor's cost 4 To maximize profit, a firm hires the quantity of labor that makes the ______________________. marginal product of labor equal to its marginal revenue marginal revenue product of labor equal to the wage rate marginal product of labor equal to the total labor cost total revenue from labor equal to the total cost of labor
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5 People allocate their time between ___________________. sleep, work, and supplying labor supplying labor and doing all sorts of other things sleep and work labor and work 6 A household's reservation wage is the ___________________________. wage rate at which the household's income is largest lowest wage rate at which the household will supply labor wage at which the household's labor supply curve bends backward wage rate at which the household's income equals the costs of working 7 The net present value of capital is equal to its _____________________________. future flow of marginal revenue product future flow of marginal revenue product minus its cost marginal revenue product minus its cost future flow of marginal revenue minus its cost 8 The supply of capital is the relationship between the quantity of capital supplied and the _______________, other things remaining the same. price in dollars interest rate price level rental rate 9
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resources that can be used only once. Non-fossil; fossil Nonexhaustible; exhaustible Exhaustible; nonexhaustible Renewable; hydrocarbon 10 The income received by the owner of a productive resource that exceeds the amount that the owner requires to induce it to offer the resource for use is called ______________. opportunity cost economic rent the wage rate the rental rate US15L2 1 The income earned by a productive resource is equal to the _____________________________. marginal revenue multiplied by the marginal product of the resource price of the resource multiplied by the quantity of the resource used marginal product of the resource divided by the price of the good produced by the resource price of the resource multiplied by the marginal product of the resource 2 An increase in the supply of a productive resource will _______ the price of the resource, _______ the quantity used of the resource, and the income will _______. decrease; increase; decrease
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This note was uploaded on 09/14/2011 for the course ECON 103 taught by Professor Gispy during the Spring '11 term at Prairie State College .

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US15L1 - US15L1 1 The demand for a productive resource, not...

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