PRE QUIZ CH 12

Which of the following is one way to invest in human capital?

Increasing your education.

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

It equals the extra output produced by an additional unit of the resource multiplied by the marginal revenue per unit of that output.

What is marginal revenue product?

The additional revenue from one additional unit of input.

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

a summer internship at a law firm for someone going to law school

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

change in total revenue resulting from employing an additional unit of the resource.

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

man-made resources used to produce other goods

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

marginal revenue product of the resource.

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

resource market.

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

substitution in production.

Which of the following is the most accurate definition of a worker's "marginal revenue product"?

the change in the firm's total revenue as the result of hiring an additional worker