econ13 - ubmitted by Le, Thao (THAOLE2) on 12/9/2011...

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ubmitted by Le, Thao (THAOLE2) on 12/9/2011 9:52:02 PM Points Awarded 4.94 Points Missed 10.26 Percentage 32.5 % 1. The demand for labor is: A) derived from the demand for the products it is used to produce. B) determined by the demand for consumer products. C) determined by the price of consumer products. D) all of the above Points Earned : 0.4/0.4 Correct Answer(s): D 2. The marginal product of labor is the: A) change in labor necessary to produce an additional unit of output. B) cost of additional labor necessary to produce an additional unit of output. C) change in output resulting from adding an additional unit of labor. D) change in revenue resulting from adding an additional unit of labor. Points Earned : 0.4/0.4 Correct Answer(s): C 3. Other things being equal, as diminishing marginal returns begin to occur, the marginal revenue product of labor: A) decreases as more workers are used. B) increases as more workers are used. C) remains unchanged as more workers are used. D) none of the above Points Earned : 0.4/0.4
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Correct Answer(s): A 4. The marginal revenue product of labor is the: A) change in labor necessary to produce an additional unit of output. B) cost of additional labor necessary to produce an additional unit of output. C) change in output resulting from adding an additional unit of labor. D) change in revenue resulting from adding an additional unit of labor. Points Earned : 0.4/0.4 Correct Answer(s): D 5. Applied to perfectly competitive labor markets, the marginal principle tells firms to hire workers until A) marginal revenue product of the last worker hired equals the wage. B) marginal productivity begins to diminish. C) average total costs are minimized. D) the price of the product equals the wage of the worker. Points Earned : 0.4/0.4 Correct Answer(s): A 6. In the short run, the marginal-revenue product curve is ________ because of ________. A) downward sloping; diminishing returns B) upward sloping; increasing returns C) downward sloping; increasing returns D) upward sloping; diminishing returns Points Earned : 0.0/0.4 Correct Answer(s): A 7.
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profit maximizing quantity of labor demanded will ________. A) up; increase B) up; decrease C) down; increase D) down; decrease Points Earned : 0.0/0.4 Correct Answer(s): A 8. Table 17.2 Refer to Table 17.2. If the price of output is $10 per unit, the marginal revenue product of the third unit of labor is: A) $50. B) $60. C) $500. D) $600. Points Earned : 0.4/0.4 Correct Answer(s): C 9. Refer to Table 17.2. If the price of output is $2 per unit and the wage rate is $40, how many workers should be hired? A) six workers
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This note was uploaded on 03/30/2012 for the course ECON 2302 taught by Professor Love during the Fall '08 term at Lone Star College.

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econ13 - ubmitted by Le, Thao (THAOLE2) on 12/9/2011...

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