SampleExam5 - Sample Questions for 5th Exam and 21 MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the

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Sample Questions for 5th Exam Chapters 16, 19 and 21 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is meant by derived demand? A) The demand is derived in beginning economics classes. B) The demand is derived from income, tastes, etc. of sellers. C) The demand is derived from the price elasticity of demand. D) The demand for a resource is derived from the demand for what it can produce. 2) The value of marginal product is calculated by multiplying the ____ by the ____. A) marginal product; price of the product B) quantity of labor; wage rate C) wage; price of the product D) total product; wage rate 3) To decide the quantity of a factor of production to hire, a firm compares the ____ to the ____. A) factor's price; average factor price B) factor's price; value of marginal product C) factor's output; average factor output D) factor's output; value of marginal product 4) A profit-maximizing firm hires labor up to the point where A) the wage times the quantity of labor equals the marginal product. B) price equals the wage. C) price equals the quantity of labor. D) the wage equals value of marginal product. 5) A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $45. Which of the following is correct? A) Too much labor is currently employed and the firm will lay off some workers. B) The firm should shut down and produce nothing. C) The firm is employing the profit-maximizing quantity of labor. D) Too few workers are currently employed and the firm will hire more workers. 6) A firm's demand for labor curve is also
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This note was uploaded on 11/16/2011 for the course ECO 2023 taught by Professor Rush during the Spring '08 term at University of Florida.

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SampleExam5 - Sample Questions for 5th Exam and 21 MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the

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