FSU Calhoun Micro Final Exam Unit 4

What is marginal revenue product?

Correcta. The additional revenue from one additional unit of input. b. The change in the revenue product resulting from one additional unit of input. c. The additional revenue from one additional dollar increase in price. d. The change in revenue resulting in one additional dollar in price.

Which of the following is the best example of an investment in human capital?

Correcta. a summer internship at a law firm for someone going to law school b. the purchase of company stock by a worker c. payments into a retirement pension plan by a skilled laborer d. an increase in the number of hours worked per week by a worker in an unskilled laboring job

When the price of a resource goes up and firms seek other suitable resources, this is called the

Correcta. substitution in production effect. b. substitution in demand effect. c. elasticity effect. d. inelasticity effect.

Which of the following best describes the marginal revenue product of a resource?

a. It equals the average product of the resource multiplied by the cost of hiring an additional (marginal) unit of the resource. Correctb. It equals the extra output produced by an additional unit of the resource multiplied by the marginal revenue per unit of that output. c. It simply means that a firm should add to its capital stock as long as competition requires it. d. It is defined as the marginal product of the resource multiplied by the resource price.

The change in the total revenue of a firm that results from employing one additional unit of a factor of production is defined as the

a. average revenue product of the resource. b. marginal product of the resource. Correctc. marginal revenue product of the resource. d. total revenue product of the resource.

The market where firms purchase factors of production is referred to as the

a. foreign exchange market. b. product market. Correctc. resource market. d. capital market.

Since the demand for a resource depends on the demand for goods that the resource helps produce, the demand for each resource is

a. inversely related to the marginal productivity of the resource. b. an independent demand. c. an elastic demand. Correctd. a derived demand.

The marginal revenue product of a resource is best described as the

a. selling price of the last unit of output produced. b. marginal product of the resource divided by the unit price of the good produced. Correctc. change in total revenue resulting from employing an additional unit of the resource. d. increment of total cost resulting from the use of an additional unit of the resource.

When a firm decides to hire more workers because local wage rates have decreased, this is an example of

a. substitution in consumption. Correctb. substitution in production. c. market failure. d. labor exploitation.

Which of the following is the best definition of "physical capital"?

a. the ownership of stock shares issued by a corporation b. the labor utilized in the production process c. natural resources in their original state Correctd. man-made resources used to produce other goods