1) Labor costs account for approximately ________ of total p…
1)Labor costs account for approximately ________ of total production costs.A)three-fourthsB)halfC)one-fourthD)one-third
2)The demand for labor isA)derived from the demand for the products it is used to produce.B)determined by the demand for consumer products.C)determined by the price of consumer products.D)all of the above
3)The demand for labor is called a “derived demand” because it isA)derived from the demand for the products it is used to produce.B)affected by the demand for consumer products workers produce.C)affected by the price of consumer products workers produce.D)all of the above
4)The marginal product of labor is theA)change in labor necessary to produce an additional unit of output.B)cost of additional labor necessary to produce an additional unit of output.C)change in output resulting from adding an additional unit of labor.D)change in revenue resulting from adding an additional unit of labor.
5)Other things being equal, as diminishing marginal returns begin to occur, themarginal revenue product of laborA)decreases as more workers are used.B)increases as more workers are used.C)remains unchanged as more workers are used.D)none of the above
6)The marginal revenue product of labor is theA)change in labor necessary to produce an additional unit of output.B)cost of additional labor necessary to produce an additional unit of output.C)change in output resulting from adding an additional unit of labor.D)change in revenue resulting from adding an additional unit of labor.
7)A curve that shows the relationship between the wage and the quantity of labordemanded in the short-run isA)the marginal revenue product of labor curve.B)the marginal revenue curve.C)the marginal product of labor curve.D)none of the above
8)When a firm hires a worker for one hour, the marginal benefit to that firmequals theA)dollar value of the goods produced by that worker in one hour.B)hourly wage of that worker.C)number of items the worker produces in that hour.D)price of each item that the worker produces in that hour.
9)When a firm hires a worker for one hour, the marginal cost to that firm equalstheA)hourly wage of that worker.B)diminishing marginal productivity of that worker.C)price of each item that the worker produces in that hour.D)average total cost of production at the quantity produced.
10)Applied to perfectly competitive labor markets, the marginal principle tellsfirms to hire workers untilA)marginal revenue product of the last worker hired equals the wage.B)marginal productivity begins to diminish.C)average total costs are minimized.D)the price of the product equals the wage of the worker.
