Quiz 16 of ECON251 Purdue University In Tutorial Library

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TITLE: Quiz 16 of ECON251 Purdue University

UNIVERSITY / INSTITUTE: Purdue University

CLASS / COURSE: Economics

QUESTION DESCRIPTION:

 
Quiz 16:
 
1. (Points: 1.0)
An increase in the wage rate causes:
a. a. an increase in a firm's demand for labor.
b. b. a decrease in a firm's demand for labor.
c. c. a decrease in the quantity of labor demanded.
d. d. an increase in labor's marginal productivity.
2. (Points: 1.0)
Marginal revenue product (MRP):
a. a. tells a firm how much to produce at each price.
b. b. tells a firm how many workers to hire at each wage rate.
c. c. tells workers how much to work at each wage rate.
d. d. tells workers how much to produce at each wage rate.
3. (Points: 1.0)
An increase in a competitive firm's demand for labor could be caused by:
a. a. a decrease in the market wage rate.
b. b. an increase in the market demand for the firm's product.
c. c. a decrease in the marginal product of workers.
d. d. an increase in the price of capital that is used by labor in production.
4. (Points: 1.0)
Marginal revenue product (MRP):
a. a. is the firm's demand for labor.
b. b. is the firms supply of labor.
c. c. is the workers supply of labor.
d. d. is the workers demand
5. (Points: 1.0)
Wages determined in a market economy are determined by:
a. a. employers deciding how much they can afford to pay.
b. b. the government comparing the value of various jobs.
c. c. the interaction between the demand for labor and the supply of
labor.
d. d. the court system deciding what are fair wages.
6. (Points: 1.0)
Marginal revenue product (MRP) of labor for a competitive seller is:
a. a. equal to the change in total product from hiring one more worker.
b. b. equal to the marginal product of labor times the price of the
product.
c. c. equal to the price of the product times the quantity sold.
d. d. equal to the marginal revenue of the good times the price of the
product
7. (Points: 1.0)
If a competitive firm is paying a wage of $12 an hour and the last worker hired
produced three units of output in an hour that sells for $3 each, then to maximize
profits the firm should:
a. a. not change its employment.
b. b. lay off some workers.
c. c. hire another worker.
d. d. there is not enough information to answer the question.
8. (Points: 1.0)
If a competitive firm is paying a wage of $12 an hour and another worker would
produce five units of output in an hour which sells for $3 each, then to maximize
profits the firm should:
a. a. not change its employment.
b. b. lay off some workers.
c. c. hire an extra worker.
d. d. there is not enough information to answer the question.
9. (Points: 1.0)
Marginal revenue product (MRP) for a competitive seller is equal to the marginal
product of labor times the price of the product or:
a. a. the selling price times the total product of labor.
b. b. the selling price of the product times the number workers hired.
c. c. the change in total revenue that results from hiring another worker.
d. d. where marginal revenue equals marginal cost.
10. (Points: 1.0)
A firm's primary interest, when it hires another worker is:
a. a. the extra output another worker produces.
b. b. how productively efficient another worker is.
c. c. the extra revenue the firm realizes from hiring another worker.
d. d. whether or not the worker gets along with the old employees.

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SUBJECTS / CATEGORIES:
1. Business Economics
2. Economics
3. Microeconomics

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