1、Economics, 11e, Global Edition (Parkin) Chapter 18 Markets for Factors of Production1 The Anatomy of Factor Markets1) Which of the following groups lists the four factors of production?A) labor, capital, land, entrepreneurshipB) labor, capital, land, moneyC) labor, money, land, entrepreneurshipD) la

2、bor, capital, money, entrepreneurshipAnswer: ATopic: Factors of ProductionSkill: DefinitionStatus: OldAACSB: Analytical Skills2) Profit is the factor price for _.A) capitalB) landC) entrepreneurshipD) laborAnswer: CTopic: Factor Prices and IncomesSkill: DefinitionStatus: OldAACSB: Analytical Skills3

3、) Coal is an example ofA) a nonrenewable natural resource.B) a renewable natural resource.C) capital.D) a casual resource.Answer: ATopic: Study Guide Question, Nonrenewable Natural ResourceSkill: ConceptualStatus: OldAACSB: Analytical Skills4) Water from the Mississippi river is an example ofA) a no

4、nrenewable natural resource.B) a renewable natural resource.C) capital.D) a static resource.Answer: BTopic: Study Guide Question, Nonrenewable Natural ResourceSkill: ConceptualStatus: OldAACSB: Analytical Skills2 The Demand for a Factor of Production1) The demand for a productive resource, not for i

5、ts own sake, but for use in the production of goods and services is called a _.A) goods and services demandB) production demandC) derived demandD) resource demandAnswer: CTopic: Derived DemandSkill: DefinitionStatus: OldAACSB: Analytical Skills2) The demand for factor is driven by the demand for goo

6、ds and services produced by that factor of production. This phenomenon is referred to asA) elastic demand.B) joint demand.C) inverse demand.D) derived demand.Answer: DTopic: Derived DemandSkill: DefinitionStatus: OldAACSB: Analytical Skills3) The demand for labor is a derived demand because it is de

7、rived fromA) the supply of labor.B) union pressure.C) the demand for the output the labor produces.D) natural law.Answer: CTopic: Derived DemandSkill: DefinitionStatus: OldAACSB: Analytical Skills4) Consider the demand for labor in the computer chip industry. The demand for laborA) is derived from t

8、he demand for computer chips.B) is shown by a perfectly elastic demand for labor.C) is shown by a perfectly inelastic demand for labor.D) has a demand curve that is backward bending.Answer: ATopic: Derived DemandSkill: ConceptualStatus: OldAACSB: Analytical Skills5) The demand for the services of la

9、bor _ a derived demand and the demand for the services of land _ a derived demand.A) is; isB) is; is notC) is not; isD) is not; is notAnswer: ATopic: Derived DemandSkill: ConceptualStatus: OldAACSB: Analytical Skills6) The marginal product of labor is theA) change in total product produced by hiring

10、 an additional unit of labor.B) total revenue divided by units of labor.C) extra revenue gained by selling one more unit of output produced by hiring additional units of labor.D) extra revenue gained by employing one more unit of labor.Answer: ATopic: Marginal ProductSkill: DefinitionStatus: OldAACS

11、B: Analytical Skills7) The value of an additional baker to a bakery is equal to theA) price of bread.B) value of marginal product of the baker.C) bakers marginal productivity in terms of loaves of bread.D) marginal cost of making an additional loaf of bread.Answer: BTopic: Value of Marginal ProductS

12、kill: ConceptualStatus: NewAACSB: Analytical Skills8) The change in total revenue that results from employing one more unit of labor is called theA) wage rate.B) value of marginal product of labor.C) average revenue.D) marginal product of labor.Answer: BTopic: Value of Marginal ProductSkill: Definit

13、ionStatus: OldAACSB: Analytical Skills9) The value of marginal product (VMP) of an input such as labor is theA) additional output produced by the last unit of an input.B) total revenue divided by the units of the input employed.C) extra revenue gained by selling one more unit of output.D) extra reve

14、nue gained by employing one more unit of the input.Answer: DTopic: Value of Marginal ProductSkill: DefinitionStatus: OldAACSB: Analytical Skills10) The value of marginal product (VMP) of labor is the extra revenue generated byA) selling one additional unit of output.B) raising the price of the good

15、by one dollar.C) hiring one additional unit of labor.D) price discrimination.Answer: CTopic: Value of Marginal ProductSkill: DefinitionStatus: OldAACSB: Analytical Skills11) The value of marginal product of labor is the increase inA) revenue created by producing one more unit of output.B) revenue cr

16、eated by hiring one more unit of labor.C) total product necessary to make revenue increase by one dollar.D) total product generated by hiring one more unit of labor.Answer: BTopic: Value of Marginal ProductSkill: DefinitionStatus: OldAACSB: Analytical Skills12) The value of marginal product of labor

17、 is the change inA) profit from hiring one more worker.B) output from hiring one more worker.C) total revenue from hiring one more worker.D) profit from producing one more unit of output.Answer: CTopic: Value of Marginal ProductSkill: DefinitionStatus: OldAACSB: Analytical Skills13) The increase in

18、revenue created by hiring one more unit of labor is theA) marginal product of labor.B) marginal revenue of labor.C) marginal product revenue of labor.D) value of marginal product of labor.Answer: DTopic: Value of Marginal ProductSkill: DefinitionStatus: OldAACSB: Analytical Skills14) Jose owns a loc

19、al coffee shop. When Jose calculates how his total revenue changes in response to hiring an extra worker, Jose is calculating theA) marginal revenue. B) value of marginal product of labor.C) marginal product of labor.D) total revenue.Answer: BTopic: Value of Marginal ProductSkill: DefinitionStatus:

20、OldAACSB: Analytical Skills15) The value of marginal product of laborA) is the change in total product that results from selling one more unit of a good.B) is equal to the price multiplied by the marginal product of labor.C) is equal to marginal revenue multiplied by the quantity.D) increases as the

21、 amount of labor employed increases.Answer: BTopic: Value of Marginal ProductSkill: DefinitionStatus: OldAACSB: Analytical Skills16) Value of marginal product equals marginal productA) multiplied by the quantity of labor.B) divided by the quantity of labor.C) multiplied by the price.D) divided by th

22、e goods price.Answer: CTopic: Value of Marginal ProductSkill: DefinitionStatus: OldAACSB: Analytical Skills17) The value of marginal product equalsA) total revenue divided by total product (output).B) marginal revenue divided by marginal product.C) total revenue multiplied by total product (output).

23、D) price multiplied by marginal product.Answer: DTopic: Value of Marginal ProductSkill: DefinitionStatus: OldAACSB: Analytical Skills18) The value of marginal product equals _ multiplied by _.A) price; marginal costB) price; marginal productC) marginal cost; marginal productD) marginal revenue; tota

24、l productAnswer: BTopic: Value of Marginal ProductSkill: DefinitionStatus: OldAACSB: Analytical Skills19) Value of marginal product of labor is the _ when one additional unit of a labor is employed, all other things remaining the same.A) change in marginal revenueB) change in marginal productC) chan

25、ge in total revenueD) total revenueAnswer: CTopic: Value of Marginal ProductSkill: DefinitionStatus: OldAACSB: Analytical Skills20) As the quantity of labor employed by a firm decreases , labors _ increases.A) marginal costB) value of marginal productC) marginal revenueD) average costAnswer: BTopic:

26、 Value of Marginal ProductSkill: ConceptualStatus: OldAACSB: Analytical Skills21) As a competitive firm hires increasing amounts of labor, the value of marginal product of laborA) decreases.B) increases.C) remains constant.D) decreases then increases.Answer: ATopic: Value of Marginal ProductSkill: C

27、onceptualStatus: OldAACSB: Analytical Skills22) A firm that can sell its output for $40 per unit. When it increases its labor force from 4 workers to 5 workers its output increases from 15 to 17 units. The value of marginal product of the 5th worker isA) $680.B) $340.C) $80.D) $40.Answer: CTopic: Va

28、lue of Marginal ProductSkill: AnalyticalStatus: OldAACSB: Analytical Skills23) For a perfectly competitive firm, the value of marginal product diminishes as employment increases because theA) price falls as the firms production increases.B) marginal revenue decreases as the firms production increase

29、s.C) marginal product decreases as the firms production increases.D) None of the above answers is correct.Answer: CTopic: Value of Marginal ProductSkill: ConceptualStatus: OldAACSB: Analytical Skills24) As the quantity of labor increases, value of marginal product for a perfectly competitive firmA)

30、decreases because the firm must lower its price to sell a larger quantity.B) decreases because the marginal product of labor decreases.C) decreases because marginal revenue decreases.D) is constant because marginal revenue is constant.Answer: BTopic: Value of Marginal ProductSkill: ConceptualStatus:

31、 OldAACSB: Analytical Skills25) Intel hired a consultant who found that the value of marginal product of Intels workers decreased as more workers were hired. Suppose Intel is a monopolistically competitive firm. Then the value of marginal product decreases because theI.workers marginal product of la

32、bor decreased as more workers were hired.II.marginal revenue of Intels chips decreased as more chips were sold.A) I onlyB) II onlyC) Both I and IID) Neither I nor IIAnswer: CTopic: Demand for LaborSkill: ConceptualStatus: NewAACSB: Analytical Skills26) Joe manages a company that produces lawn mowers

33、. Joe knows that the value of marginal productA) decreases as he hires more labor to produce lawn mowers.B) does not change as he sells more lawn mowers.C) increases as he hires more labor to produce lawn mowers.D) increases as he sells more lawn mowers.Answer: ATopic: Value of Marginal ProductSkill

34、: ConceptualStatus: OldAACSB: Analytical Skills27) Sams Scarves has 2 knitting machines and employs 2 people. They produce 15 scarves a day. If the firm hires an additional person, the 3 workers can produce 19 scarves a day other things remaining the same. The market for scarves is perfectly competi

35、tive and the price of a scarf is $20. The value of marginal product of the third worker is _.A) $80B) $300C) $380D) 4 scarvesAnswer: ATopic: Value of Marginal ProductSkill: AnalyticalStatus: OldAACSB: Analytical Skills28) When Sams Scarves uses 2 knitting machines and employs 3 people, total revenue

36、 is $330 a day. When Sams Scarves uses 2 knitting machines and employs 4 people, total revenue is $360 a day. The value of marginal product of the third worker is _.A) $110B) $30C) $360D) $90Answer: BTopic: Value of Marginal ProductSkill: AnalyticalStatus: OldAACSB: Analytical SkillsLabor(workers)Ou

37、tput(gallons of gasoline)001100218032404280530029) Suns Gas Station is a firm operating in a perfectly competitive industry. Suns Gas Station sells each gallon of gas for $3. What is the total revenue earned by selling 180 gallons of gas?A) $240B) $540C) $840D) $3,300Answer: BTopic: Total RevenueSki

38、ll: AnalyticalStatus: OldAACSB: Analytical Skills30) Suns Gas Station is a firm operating in a perfectly competitive industry. Suns Gas Station sells each gallon of gas for $3. What is the marginal product from hiring the fourth worker?A) 70 gallons of gasolineB) 280 gallons of gasolineC) 40 gallons

39、 of gasolineD) 80 gallons of gasolineAnswer: CTopic: Value of Marginal ProductSkill: AnalyticalStatus: OldAACSB: Analytical Skills31) Suns Gas Station is a firm operating in a perfectly competitive industry. Suns Gas Station sells each gallon of gas for $3. What is the value of marginal product from

40、 hiring the fourth worker?A) $2,400B) $840C) $120D) $60Answer: CTopic: Value of Marginal ProductSkill: AnalyticalStatus: OldAACSB: Analytical SkillsQuantity of labor(workers)Total revenue (dollars)Total product (units of output)0001205236934812456145601532) In the table above, the marginal product o

41、f the first unit of labor is _ units of output.A) 4B) 5C) 16D) 20Answer: BTopic: Marginal ProductSkill: AnalyticalStatus: OldAACSB: Analytical Skills33) In the table above, the marginal product of the third unit of labor is _ units of output.A) 3B) 4C) 12D) 16Answer: ATopic: Marginal ProductSkill: A

42、nalyticalStatus: OldAACSB: Analytical Skills34) In the table above, the value of marginal product of the third unit of labor isA) $3.B) $4.C) $12.D) $16.Answer: CTopic: Value of Marginal ProductSkill: AnalyticalStatus: OldAACSB: Analytical Skills35) In the table above, the firm producing the product

43、 isA) a monopoly.B) an oligopoly.C) a duopoly.D) perfectly competitive.Answer: DTopic: Value of Marginal ProductSkill: AnalyticalStatus: OldAACSB: Analytical Skills36) In the table above, if the wage rate is $8.00 per hour, the profit-maximizing number of workers isA) 1.B) 2.C) 4.D) 5.Answer: CTopic

44、: Profit MaximizationSkill: AnalyticalStatus: OldAACSB: Analytical Skills37) In the table above, if the wage rate is $12.00 per hour, the profit-maximizing number of workers isA) 2.B) 3.C) 4.D) 5.Answer: BTopic: Profit MaximizationSkill: AnalyticalStatus: OldAACSB: Analytical Skills38) A firm in a c

45、ompetitive labor market will hire labor until the value of marginal product of labor equals theA) firms marginal revenue.B) firms marginal cost.C) firms average cost.D) wage rate.Answer: DTopic: Profit MaximizationSkill: AnalyticalStatus: OldAACSB: Analytical Skills39) The quantity of labor demanded

46、 by the firm is such that theA) wage rate equals the marginal cost.B) wage rate equals the value of marginal product of labor.C) wage rate equals the marginal product of labor.D) marginal revenue equals the marginal product.Answer: BTopic: Profit MaximizationSkill: ConceptualStatus: OldAACSB: Analyt

47、ical Skills40) To maximize profit, a firm hires the quantity of labor that makes the _ of labor equal to the _.A) value of marginal product; wage rateB) total revenue; total cost of laborC) marginal product; total cost of laborD) marginal product; marginal revenueAnswer: ATopic: Profit MaximizationS

48、kill: ConceptualStatus: OldAACSB: Analytical Skills41) Which of the following is a condition for maximum profit?A) VMP = W.B) VMP = MC.C) MP = W.D) MC = W.Answer: ATopic: Profit MaximizationSkill: ConceptualStatus: OldAACSB: Analytical Skills42) To maximize its profit, a firm will hire more workers

49、as long asA) marginal revenue exceeds the wage rate.B) marginal revenue is less than the wage rate.C) value of marginal product exceeds the wage rate.D) marginal product exceeds the wage rate.Answer: CTopic: Profit MaximizationSkill: ConceptualStatus: OldAACSB: Analytical Skills43) If the wage that

50、a competitive firm must pay its workers exceeds their value of marginal product, the firm willA) decrease the quantity of labor it employs.B) increase the quantity of labor it employs.C) lower the price of the good.D) raise the price of the good.Answer: ATopic: Profit MaximizationSkill: ConceptualSt

51、atus: OldAACSB: Analytical Skills44) If a firm finds that, at its current level of employment, VMP W, it willA) be maximizing profits.B) be minimizing profits.C) increase the amount of labor it hires.D) decrease the amount of labor it hires.Answer: CTopic: Profit MaximizationSkill: ConceptualStatus:

52、 OldAACSB: Analytical Skills45) If a firm finds that, at its current level of employment, VMP W, then it hasA) reached maximum profits.B) reached minimum profits.C) not hired enough labor to maximize its profit.D) hired too much labor to maximize its profit.Answer: DTopic: Profit MaximizationSkill:

53、ConceptualStatus: OldAACSB: Analytical Skills46) If the wage rate is _ the value of marginal product, a firm can increase its profit by _.A) greater than; selling an extra unit of outputB) less than; selling one less unit of outputC) less than; hiring an extra workerD) less than; hiring one less wor

54、kerAnswer: CTopic: Profit MaximizationSkill: ConceptualStatus: OldAACSB: Analytical Skills47) If the value of marginal product of the last worker hired is $24 and the wage rate is $25, thenA) more workers should be hired.B) the worker should be fired.C) the firm has hired the profit maximizing numbe

55、r of workers.D) the firm is earning $1 of profit from this worker.Answer: BTopic: Profit MaximizationSkill: ConceptualStatus: OldAACSB: Analytical Skills48) If the value of marginal product of a factor of production exceeds the price of the factor, theA) firm should hire more of that factor.B) firm

56、should hire less of that factor.C) firm is maximizing profits.D) firm should shut down.Answer: ATopic: Profit MaximizationSkill: ConceptualStatus: OldAACSB: Analytical Skills49) If a firm finds that the wage rate (W) is less than the value of marginal product (VMP), then to maximize its profit the f

57、irm should hireA) less labor, which will increase the VMP.B) more labor, which will decrease the VMP.C) no more or less labor, because profits are greatest when W W.Answer: DTopic: MonopsonySkill: ConceptualStatus: OldAACSB: Analytical Skills76) For a monopsony, the marginal cost of labor is _ the w

58、age rate.A) greater thanB) less thanC) equal toD) first greater than and later less than Answer: ATopic: MonopsonySkill: ConceptualStatus: OldAACSB: Analytical Skills77) A labor market monopsonyA) has a marginal cost of labor curve that lies above the labor supply curve.B) has a marginal cost of lab

59、or curve that lies below the labor supply curve.C) is a labor market in which the firm has an elastic demand for labor.D) is a labor market in which the firm has an inelastic demand for labor.Answer: ATopic: MonopsonySkill: ConceptualStatus: OldAACSB: Analytical Skills78) For a monopsony, the margin

60、al cost of labor curve lies above the labor supply curve becauseA) to hire one more unit of labor requires that the wage be raised for all units of labor.B) to hire one more unit of labor requires that the wage be raised for just the last unit of labor hired.C) to hire one more unit of labor, the fi