What is meant by the marginal revenue product of capital?
Correct answer B. The additional value of output from using more capital
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Economics MCQs
Page 89 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 89 of 131
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
What is the supply of capital like in the short run, and what does it depend on in the long run?
Correct answer B. Fixed, rental rate of capital
How will land be allocated between competing uses?
Correct answer D. The equilibrium rental rate equates total demand with supply
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The functional distribution of income shows how national income is shared among which of the following?
Correct answer B. The factors of production
What mainly explains the different capital intensity found in different industries?
Correct answer C. Technology, the ease of factor substitution
What is a rise in workers’ real wages likely to do?
Correct answer C. Encourage the use of more capital in the long run, reduce demand for all inputs
What determines the value of an asset?
Correct answer B. The present value of the future stream of income it can earn
What accounts for the difference between gross investment and net investment?
Correct answer A. Depreciation of the existing capital stock
When does involuntary unemployment exist?
Correct answer D. When workers would work at the going wage but cannot find jobs
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By restricting the supply of labour, what can a trade union achieve?
Correct answer A. Increase the wage, lower employment
Why is skilled labour relatively scarce?
Correct answer D. It is costly to acquire human capital
Why do top footballers tend to earn more than lecturers?
Correct answer A. Top footballers are relatively scarce in relation to lecturers
A profit-maximising firm will keep hiring labour until which two values are equal?
Correct answer A. Marginal cost of labour, marginal revenue product
Which explanation of wage differentials is unlikely to be true?
Correct answer B. Employers in competitive markets are bigots
Which of the following is NOT a reason why some workers receive more than the equilibrium wage?
Correct answer C. Beauty
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What effect do competitive markets tend to have on labour market discrimination?
Correct answer D. They reduce labour market discrimination because non-discriminating firms employ cheaper labour, earn more profit and drive discriminating firms out of the market
What characteristics must a market have in order to support superstars?
Correct answer C. Every customer must want the good supplied by the best producer, and the technology must exist for the best producer to supply every customer at low cost
Which of these professionals is most likely to earn a superstar’s income?
Correct answer B. The best writer
What is true about the earnings of attractive workers compared with unattractive workers?
Correct answer D. Attractive people tend to earn more because they may actually have a larger value of marginal product
If two jobs need the same skills and experience, which one is likely to pay more?
Correct answer A. The unpleasant one