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US15L11The 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 demandproduction demandderived demandresource demand2Marginal revenue product is the ________________ when one additional unit of a labor is employed, all other things remaining the same. change in marginal revenuechange in total revenuetotal revenuemarginal revenue3The firm's demand for labor is derived from __________. the firm's marginal costlabor's marginal revenue productthe firm's marginal revenuelabor's cost4To maximize profit, a firm hires the quantity of labor that makes the ______________________. marginal product of labor equal to its marginal revenuemarginal revenue product of labor equal to the wage ratemarginal product of labor equal to the total labor costtotal revenue from labor equal to the total cost of labor
5People allocate their time between ___________________. sleep, work, and supplying laborsupplying labor and doing all sorts of other thingssleep and worklabor and work6A household's reservation wage is the ___________________________. wage rate at which the household's income is largestlowest wage rate at which the household will supply laborwage at which the household's labor supply curve bends backwardwage rate at which the household's income equals the costs of working7The net present value of capital is equal to its _____________________________. future flow of marginal revenue productfuture flow of marginal revenue product minus its costmarginal revenue product minus its costfuture flow of marginal revenue minus its cost8The supply of capital is the relationship between the quantity of capital supplied and the _______________, other things remaining the same. price in dollarsinterest rateprice levelrental rate9
_______ natural resources are resources that can be used repeatedly, and _______ natural resources are resources that can be used only once. Non-fossil; fossilNonexhaustible; exhaustible Exhaustible; nonexhaustible Renewable; hydrocarbon10The 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 costeconomic rentthe wage ratethe rental rateUS15L21The income earned by a productive resource is equal to the _____________________________. marginal revenue multiplied by the marginal product of the resourceprice of the resource multiplied by the quantity of the resource usedmarginal product of the resource divided by the price of the good produced by the resourceprice of the resource multiplied by the marginal product of the resource2An increase in the supply of a productive resource will _______ the price of the resource, _______ the quantity used of the resource, and the income will _______.