A. labor, land, and capital
B. water, earth and knowledge
C. money, stocks and bonds.
D. management finance and marketing
Production Factors
The value of the marginal product of labor is ?
A. the price of the output times wage of labor
B. the price of the output times the marginal product of labor
C. none of these answers
D. the wage of labor times the quantity of labor
E. the wage of labor times the marginal product of labor
A decrease in the demand or fish ?
A. decrease the value of the marginal product of fishermen reduces their wage, and reduces employment in the fishing industry
B. increase the value of the marginal product of fishermen increase their wage, and increase employment in the fishing industry.
C. decrease the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
D. increase the value of the marginal product of fishermen increase their wage and decreases employment in the fishing industry
An increase in the demand for apples will cause all but which of the following ?
A. a decrease in the number of apple pickers employed
B. an increase in the value of the marginal product of apple pickers
C. an increase in the price of apples
D. an increase in the wage of apple pickers
If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?
A. an amount equal to the price of output times total output
B. the amount allocated by the political process
C. an equal share of output
D. the value of its marginal product
An increase in the demand for a firm’s output ?
A. decrease the prosperity of the firm but increases the prosperity of the factors hired by the firm
B. decreases the prosperity of both the firms and the factors hired by the firm.
C. increases the prosperity of both the firm and the factors hired by the firm.
D. increases the prosperity of the firm but decreases the prosperity of the factors hired by the firm.
Which of the following is not true with regard to workers who have a high value of marginal product? These workers ?
A. have skills that are in relatively scarce supply
B. produce output for which there is great demand
C. usually have little capital with which to work
D. are usually highly paid
When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?
A. interest
B. dividends
C. increases in stocks of goods
D. retained earnings
If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?
A. cause a reduction is output
B. have no effect on output
C. increase the marginal product of the factor
D. generate ever smaller amounts of output
For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm’s ?
A. supply curve of capital
B. demand curve for capital
C. production function
D. marginal cost curve