Marginal revenue product for a perfectly competitive seller is equal to

If demand is inelastic, the absolute value of the price elasticity of demand is

A. greater than one.

B. greater than the absolute value of the slope of the demand curve.

C. one.

D. less than one.

Economists in general

A. Do not believe that people's tastes determine demand and therefore they ignore the subject of tastes.

B. Incorporate tastes into economic models only to the extent that tastes determine whether pairs of goods are substitutes or complements.

C. Do not try to explain people's tastes, but they do try to explain what happens when tastes change.

D. Believe that they must be able to explain people's tastes in order to explain what happens when tastes change.

A demand curve which is ________ represents perfectly inelastic demand, and a demand curve which is ________ represents inelastic demand.

A. vertical; downward sloping

B. upward sloping; horizontal

C. downward sloping; vertical

D. horizontal; downward sloping

A decrease in the price of GPS systems will result in

A. a decrease in the demand for GPS systems.

B. an increase in the supply of GPS systems.

C. a smaller quantity of GPS systems supplied.

D. a larger quantity of GPS systems supplied.

11) At a product's equilibrium price

A. the product's demand curve is the same as the product's supply curve.

B. the product's demand curve crosses the product's supply curve.

C. the quantity of the product demanded is less than the quantity of the product supplied.

D. the quantity of the product demanded is greater than the quantity of the product supplied.

If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until

A. the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium.

B. quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.

C. all consumers will be able to afford the product.

D. quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price.

Marginal revenue product of labor for a competitive seller is

A. the change in total product from hiring one more worker.

B. the marginal revenue of the product multiplied by the output price.

C. the output price multiplied by the quantity sold.

D. equal to the marginal product of labor multiplied by the output price.

14) Let MP = marginal product, P = output price, and W = wage, then the equation that represents the condition where a competitive firm would hire another worker is

A. P × MP = W.

B. P × W > MP.

C. P × MP > W.

D. P × MP < W.

Marginal revenue product for a perfectly competitive seller is equal to

A. the output price multiplied by the total product of labor.

B. the marginal cost of production.

C. the change in total revenue that results from hiring another worker.

D. the output price multiplied by the number workers hired.

16) An individual's labor supply curve shows

A. the maximum wage rates offered to that individual by various potential employers.

B. the relationship between the quantity of hours worked and total income earned by that individual.

C. the relationship between wages and the quantity of labor that a firm is willing to employ.

D. the relationship between wages and the quantity of labor that she is willing to supply.

17) A firm's demand for labor curve is also called its

A. marginal revenue product of labor curve.

B. marginal benefit of labor curve.

C. marginal valuation curve.

D. marginal factor cost of labor curve.

Date: 2015-12-24; view: 2629