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Quiz 11 18. In the resource market, the demand for labor is a(n) _____. complementary demand b. substitution demand c. marginal demand d. income...

Quiz 11

18. In the resource market, the demand for labor is a(n) _____.

a. ​complementary demand

b. ​substitution demand

c. ​marginal demand

d. ​income demand

e. ​derived demand

25. A temporary price differential in resource markets is:

a. ​caused by a failure of firms to maximize profits.

b. ​caused by governments increasing the minimum wages of workers.

c. ​eliminated by resources moving from lower-valued to higher-valued uses.

d. ​eliminated when resources earn an excess of their opportunity costs.

e. ​caused by inherent differences in nonmonetary aspects of a job

27. If the market wage is below the marginal revenue product of labor, then: 

a. ​a profit-maximizing firm will employ fewer workers.

b. ​there is a decrease in the demand for labor.

c. ​a profit-maximizing firm will employ more workers.

d. ​the opportunity cost of leisure increases.

e. ​there is an increase in the demand for labor.

30. The following table shows the product price of a perfectly competitive firm and the output produced by the firm. From the table, it can be said that the marginal product of the third machine is _____.

Table 11.1

Machines Output Product Price $

0 0 3

1 7 3

2 12 3

3 15 3

4 17 3

5 18 3

a. ​$2

b. ​$3

c. ​3 units

d. ​15 units

e. ​5 units

Top Answer

18.​marginal demand​ 25.eliminated when resources... View the full answer

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Other Answers

18. b. ​substitution demand 25. c. ​eliminated by resources... View the full answer

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