11.The marginal-factor cost (MFC) the:
a.value of the additional output that : 1413864
11.The marginal-factor cost (MFC) is the:
a.value of the additional output that an extra unit of a resource can produce.
b.additional cost of employing an additional unit of a resource.
c.additional cost of producing an additional unit of output.
d.the ratio of the total fixed cost to the total cost of production.
e.ratio of total cost to the total amount of resources employed.
12.In the market for resources, demand and supply:
a.do not behave in the same way as demand and supply in product markets.
b.behave in exactly the same way as demand and supply in product markets.
c.curves usually don’t intersect at equilibrium.
d.are both controlled by firms.
e.are both controlled by households
13.Why is the marginal revenue product curve of a factor negatively sloped?
a.Additional revenue generated from an additional unit of a factor remains constant as more resources are hired.
b.Additional revenue generated from an additional unit of a factor declines as more resources are hired.
c.Additional revenue generated from an additional unit of a factor usually becomes zero as more resources are hired.
d.Additional revenue generated from an additional unit of a factor increases as more resources are hired.
e.Additional revenue generated from an additional unit of a factor doubles every time new resources are hired.
14.An automobile manufacturer uses land, labor, capital, and entrepreneurial ability to produce cars and trucks. If the price of trucks increases, the automobile manufacturer would not _____.
a.pay a lower wage rate to labor
b.increase truck production
c.hire more workers
d.increase capital used in production
e.increase land used in production
15.Which of the following statements best illustrates the relationship between the market for products and the market for resources?
a.An increase in the price of cameras will decrease the demand for film.
b.As income rises, people demand relatively smaller amounts of food.
c.An increase in demand for textiles will increase the demand for textile workers.
d.An increase in the price of butter will cause more people to buy margarine.
e.A decrease in demand for tea will increase the demand for coffee.
16.If the market price of the product that employs labor in production increases:
a.the marginal product of labor increases.
b.the demand curve for labor shifts to the left.
c.the price of labor decreases.
d.the marginal revenue product of labor increases.
e.the supply curve of labor shifts to the left.
17.Intel microchips are an input into a computer. What happens to the demand for the microchips if the demand for computers decline?
a.The quantity demanded of Intel microchips increases.
b.The quantity demanded of Intel microchips declines.
c.The demand for Intel microchips will increase.
d.The demand for Intel microchips will decrease.
e.There is no change in the demand for the Intel microchips.
18.During the recession witnessed in early 2001, many firms laid off their employees and downsized. The reason for this decrease in the demand for employees was:
a.a reduction in the demand for the final good.
b.a reduction in the price of the final good.
c.an increase in the demand for the final good.
d.an increase in the price of the final good.
e.the incompetency and poor performance of the employees.
19.Assume that labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. If the product sells for $6 per unit in a perfectly competitive market, then the MRP of this additional worker is:
20.The price of a resource declines when:
a.both the demand for and the supply of the resource declines in the same proportion.
b.demand remaining constant, supply of the resource declines.
c.supply remaining constant, the demand for the resource declines.
d.both the demand for and the supply of the resource increases in the same proportion.
e.both the demand for and the supply of the resource declines, but supply falls by a greater proportion than demand.