JTCC Micro Review: Ch 16 & 17

Front

All firms have to incur costs because of

Back

the resources they use.

Front

To firms, resource prices are a major part of

Back

costs.

Front

Holding revenues constant, cost minimization by firms is equivalent to

Back

profit maximization.

Front

Marginal product is

Back

the amount an additional worker adds to the firm's total output.

Front

A decline in the price of resource A will

Back

increase the demand for complementary resource B.

Front

If two resources are highly substitutable for one another,

Back

an increase in the price of one will increase the demand for the other.

Front

The principal-agent problem in labor markets arises because of the possibility of shirking by workers.

Back

True

Front

Wage differentials may result from all the following except: differences in the nonmonetary aspects of various occupations, differences in the education and skills of workers, geographic and sociological immobility of workers, the tendency of qualified workers to move from lower pay jobs to higher pay jobs.

Back

the tendency of qualified workers to move from lower pay jobs to higher pay jobs.

Front

The concept of investment in human capital indicates that

Back

expenditures on education can be explained in essentially the same way as expenditures on machinery and equipment.

Front

The earnings of highly educated workers

Back

rise more rapidly than those of less-educated workers.