Unit 5: Factor Markets (TYU)

Front

The marginal revenue product of labor is the:

Back

Additional revenue a firm earns when it employs an additional unit of labor

Front

Dunder Mifflin's demand for labor is known as derived demand because:

Back

The amount of labor demanded depends on demand for Dunder Mifflin's product

Front

Economics argue that most top-selling music artists earn economic rent because they:

Back

Earn far more as musicians than they could earn in their next-best occupation

Front

Dunder Mifflin employs paper sales reps in a perfectly competitive market. Which of the following will happen in the market for paper sales reps in the short run if the demand for paper increases? Options: The supply curve of paper sales reps will shift to the right, The supply curve of paper sales reps will shift to the left, The demand curve for paper sales reps will shift to the right, The demand curve for paper sales reps will shift to the left, Neither the demand curve nor the supply curve of paper sales reps will shift

Back

The demand curve for paper sales reps will shift to the right

Front

An increase in the demand for paper will cause the demand for paper sales reps and the wage rate of skilled paper sales reps to change in which of the following ways? Options: Option A, Option B, Option C, Option D, Option E

Back

Option A

Front

Which of the following would cause a decrease in the gap in earnings between skilled and unskilled workers over time? A decrease in the demand for unskilled workers relative to skilled workers, A decrease in the supply of skilled workers relative to unskilled workers, An increase in the demand for unskilled workers relative to skilled workers, An increase in both the demand for and supply of skilled workers, A decrease in both the demand for and supply of unskilled workers

Back

An increase in the demand for unskilled workers relative to skilled workers

Front

Which of the following will shift the demand curve for a factor of production to the right?
An increase in the price of the factor of production,
An increase in the price of a substitute factor of production,
A decrease in the price of the product produced by the factor,
A decrease in the marginal product of the factor,
A decline in technology used by the factor of production.

Back

An increase in the price of a substitute factor of production

Front

Dunder Mifflin is a perfectly competitive firm. What is the marginal revenue product of the third worker hired if the price of the product is $20?

Back

$160

Front

At Dunder Mifflin, if the marginal product of capital equals the marginal product of labor, and the wage rate equals the rental rate of capital, then:

Back

The firm is producing that quantity at the lowest cost

Front

Michael Scott manages Dunder Mifflin. Two inputs are used to produce paper. To minimize costs of production, Michael Scott should continue to hire inputs up to the level at which the: (Marginal product/price) of each input is equal

Back

(Marginal product/price) of each input is equal