Econ Final

The demand for labor and other inputs of production typically decline in a recession becase those iputs have become more expensive than before the recession are no longer offered for sale in factor markets are derived from the demand for final output, which also decliines in a recession have become relatively scarcer than before the recession

are derived from the demand for final output, which also declines in a recession

The equilibrium interest rate in capital markets is determined by borrowers savers banks none of the above

banks

If interest rates are set too low banks will not be able to lend as much as they want to there will be a surplus of capital there will be no shortages of capital savers will flood the market with more savings

banks will not be able to lend as much as they want to

Assume the apple market is competitive, if citizens want wages and the number of available jobs for apple pickers to increase, the best strategy would be to Boycott apples until wages increase insist the governement establish a minimum wage for apple pickers buy more apples insist that the sellers raise the price of apples

buy more apples

increased pollution levels will have the least effect on the demand for residential land agricultural land commercial land

commercial land

if a chair can be sold for $80 and it takes a worker two hours to make a chair, the marginal revenue product of this worker is $80 per hour $8 per hour $40 per hour $20 per hour

$40 per hour

The future value three years from now of 2500 received three years from now is 2500*(1+r)^3 2500/(1 + r) 2500 + 2500*(1+r)^2 2500

2500

The present value of $2500 that will be received in three years from now is: 2500/(1+r)^3 2500*(1+r)*3 2500/(1+r) 2500*(1+r)^3

2500/(1+r)^3

A firm has an average 100% rate of return on its assets. What is the highest interest rate a firm would be willing to pay on a $10000 loan today due in two years, to buy capital that will return $6000 in each of the next two years? 12.3% 4.1% 5.9% 10%

4.1%

If the demand for alarm clocks decreases, the effect on the alarm clock job market will be to decrease the demand for labor and reduce equilibrium wages have no impact on equilibrium wages increase the demand for labor and increase equilibrium wages reduce the supply of labor and increase equilibrium wages

decrease the demand for labor and reduce equilibirum wages

If consumers decide to buy fewer straberries, the the demand for strawberry pickers will fall quantity demanded of strawberry pickers will fall demand for strawberry pickers will rise quantity demanded of strawberry pickers will rise

demand for strawberry pickers will fall

As labor productivity increases, which of the following shifts in the labor market should occur demand for labor should shift to the right demand for labor should shift to the left supply of labor should shift to the right supply of labor should shift to the left

demands for labor should shift to the right

The demand for labor is downward sloping because of Rising price Diminishing returns to labor Failing MC Rising productivity

Diminishing returns to labor

If there is an increase in the number of workers who want to work as accountants, there will be a Movement down the labor supply curve to the left Movement up the labor supply curve to the right Leftward shift of the labor supply curve Rightward shift of the labor supply curve

Rightward shift of the labor supply curve

If an additional unit of labor can produce 4 units per hour, product price is constant at $5 per unit, and the wage rate is $19 per hour, then The employer should lower wages and accept less The additional unit of labor should not be employed The additional unit of labor should be employed Product price must be reduced if profits are to be made

The additional unit of labor should be employed

In the market for capital, the price is defined as a rate of return an interest rate an oppurtunity cost a profit rate

an interest rate

The marginal revenue product establishes a lower limit to the wage rate demands of laborers a lower limit to profit on the sale of a unit of output a lower limit to the productivity of a worker an upper limit to the wage rate an employer is willing and able to pay

an upper limit to the wage rate an employer is willing and able to pay

Worker productivity diminishes as additional workers are hired because each worker has an increasingly larger amount of other inputs with which to work each worker has an increasingly smaller amount of other inputs with whick to work later hires do not work as hard as earlier hires later hires are not as skilled as earlier hires

each worker has an increasingly smaller amount of other inputs with which to work

A firm should hire an additional worker as long as the wage rate is Greater than the MRP Greater than the MPP Less than or equal to the MRP Less than the MPP

less than or equal to the MRP

An increase in the interest rate a firm pays on loans will: make more capital projects worthwhile make fewer capital projects worthwhile not change the number of capital projects the firms considers worthwhile change the rate of return on capital projects

make fewer capital projects worthwhile

receiving revenues from capital projects in year 3 instead on year 2 will: make more capital projects worthwhile not change the number of capital projects the firms considers worthwhile make fewer capital projects worthwhile change the interest rate is pays

make fewer capital projects worthwhile

An increase in the rate a firm uses to bring future calues into the present, all else constant, will decrease the interest rate is pays make fewer capital project worthwhile make more capital projects worthwhile not change the number of capital projects the firm considers worthwhile

make more capital projects worthwhile

the change in total revenue associated with one additional unit of input measures cost efficiency marginal product elasticity of labor supply marginal revenue product

marginal revenue product

If the wage rate increases there will be a Movement down the labor supply curve to the left Movement up the labor supply curve to the right Leftward shift of the labor supply curve Rightward shift of the labor supply curve

movement up the labor supply curve to the right

The steepness of labor supply measures the Responsiveness of the wage rate to changes in the labor supplies Responsiveness of labor supplied to changes in the wage rate Revenue received by firms per worker Oppurtunity cost of labor

responsiveness of labor supplied to changes in the wage rate

If the economy is growing rapidly, the demand for capital will cause the equilibrium price to ____ and the equilibrium quantity to _________. Rise; fall fall; fall fall; rise rise; rise

rise; rise

The supply of capital is upward sloping because savers save more at higher interest rates borrowers borrow less at higher interest rates borrowers borrow less at higher interest rates borrowers borrow more at lower interest rates banks lend more at higher interest rates

savers save more at higher interest rates

Students who major in computer science are paid a lot mroe when they graduate than those who major in philosophy because the derived demand for computer schience majors is less than the derived demand for philosophy majors there are more firms to hire philosophy majors than computer science majors the marginal revenue product for computer science majors is more than the marginal revenue product for philosophy majors

the marginal revenue pproduct for computer science majors is more than the marginal revenue product for philosophy majors

The wage rate is Not related to labor supply because people must work to survive Not related tothe value of leisure because people need to relac The oppurtunity cost of labor The payment of labor

the payment for labor

The demand for agricultural land at a particular location will depend on the type of soil the demand for other land uses at the same location the quality of the schools in the area all of the above will determind the demand for agricultural land

the type of soil

which of the following would not shift the market demand for labor, ceteris paribus? The productivity of labor The number of employers The demand for final products The wage paid to labor

the wage paid to labor

When there are more qualified applicants than job opening, this indicates that the wages being offered are too high labor supply curve must be backward bending economy must be in a recession availabale jobs must be very desirable and pay high wages

wages being offered are too high

The determinants of labor demand include the leisure-labor trade off labor shortages worker productivity labor expectations

worker productivity

If $1000 is received two years and $1000 is received four years, the present value given a 10% rate of return is: $2000 $1826.44 $1509.46 $2674.10

$1509.10

If firm A has a rate of return of 5% and Firm B ahs a rate f return of 3%, ________ will have a higher present value for $2500 received two years from now Firm B Neither It is unknow who Firm A

Firm B

For an upward sloping labor supply curve, the quantity of labor supplied varies directly, ceteris paribus with... The value of leisure time the derived demand for labor Payroll Taxes The wage rate

The wage rate

in venture capital markets, if the number of new goods coming to market is declining, then inventors will be forces to accept a lower percentage of the profits inventors will have to compete for a smaller pool of available funding inventors will want a higher percentage of the profits earned investors will want a higher percentage of the profits earned

inventors will want a higher percentage of the profits earned

The willingness to work a certain amount of time at a given wage rate is known as A. labor supply B. Output supply C. Labor demand D. Output demand

labor supply

If the number of available workers of a particular type increases, which of the following shifts should occur in the labor market for the particular type of labor demand for labor should shift to the left demand for labor should shift to the right supply of labor should shift to the right supply of labor should shift to the left

supply of labor should shift to the right

If an additional unit of labor can produce 3 units per hour, the product price is constant at $8 per unit, and the wage rate is $26 per hour, then The additional unit of labor should not be employed The additional unit of labor should be employed Product price must be reduces if profits are to be made The meployer should lower wages and accept less employment of laber

the additional unit of labor should not be employed