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MULTIPLE CHOICE 1.The buyers and sellers in a resource market are: a.household

Question : MULTIPLE CHOICE 1.The buyers and sellers in a resource market are: a.household : 1413863

MULTIPLE CHOICE

1.The buyers and sellers in a resource market are:

a.household and firms respectively.

b.banks and farmers respectively.

c.households and land owners respectively.

d.firms and household respectively.

e.exporters and importers respectively.

2.Firms are consumers and households are the producers in the _____.

a.stock market

b.bond market

c.labor market

d.product market

e.underground market

3.Goods which are demanded to produce something else are said to have a(n):

a.direct demand.

b.composite demand.

c.derived demand.

d.joint demand.

e.inelastic demand.

4.Which of the following goods is likely to have a derived demand?

a.Tractor

b.T-shirt

c.Italian food

d.Residential buildings

e.Cigarettes

5.Tools and equipments used in production are:

a.natural resources.

b.entrepreneurial resources.

c.human capital.

d.capital resources.

e.labor resources.

6.The resource market is the same as the product market except that, in the resource market:

a.the demand curve slopes upward.

b.the households are the sellers and the firms are the buyers.

c.there is no substitution effect.

d.the supply curve is perfectly inelastic.

e.there is no income effect.

7.When studying the market for resources, it is important to understand that:

a.resources are wanted not for themselves but for what they produce.

b.demand for resources is generally inelastic in nature.

c.derived demand does not apply to the resource market.

d.resource markets do not conform to the laws of supply and demand as other markets do.

e.supply is much more important than demand in determining the price of a resource.

8.A general study of resource markets shows that the roles of firms and households are:

a.reversed from what they are in the product markets.

b.the same as what they are in the product markets.

c.different from what they are in the product markets because households are residual claimants.

d.different from what they are in the product markets because firms are residual claimants.

e.different from what they are in the product markets because the laws of demand and supply do not work for the resource markets.

9.The marginal-revenue product (MRP) is the:

a.value of the additional output that an extra unit of a resource can produce.

b.cost of hiring an additional unit of a resource.

c.extra cost of producing an additional unit of output.

d.increase in total output when an additional unit of an input is hired.

e.change in total revenue when an additional unit of a good is sold.

10.The demand curve for labor indicates that:

a.as the real wage rate increases, employers will hire more workers.

b.as the nominal wage rate increases, employers will hire more workers.

c.as the nominal wage rate decreases, the real wage rate increases.

d.as the real wage rate increases, employers will hire fewer workers.

e.the real wage rate does not affect firms’ hiring decisions.

 

 

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