Reference no: EM131969961

Could you please help me with these questions?

1. Other things constant, the firm's demand curve for a variable input ,such as  labor, depends on the:

a. marginal cost of the last unit of output sold.

b. marginal product of capital.

c. value of the marginal product of labor.

d. marginal product of labor only.

2. For a firm in perfect competition in the product market, the marginal revenue product of labor falls as more workers are hired because of:

a. diminishing marginal cost of production.

b. falling output price as more of the good is sold.

c. the falling output price of labor.

d. diminishing marginal product of labor.

3. A payment to a factor of production above the amount needed to obtain that factor for a particular task is known as:

a. surplus value.

b. an economic rent.

c. the marginal value product of the factor.

d. a compensating differential.

4. In economics, a pure economic rent is a payment:

a. to the owners of a factor of production whose supply is perfectly inelastic.

b. that is made only to landowners.

c. to the owners of a factor of production whose supply is relatively inelastic.

d. only to the owners of land and capital because these are fixed.

5. Some superstars in professional baseball and football earn very high salaries. Which one of the following statements is correct?

a. For the players, their economic rent earned is zero.

b. They are paid high salaries because of compensating or equalizing wage differentials.

c. Most of their salaries is an economic rent.

d. The opportunity cost of playing professional sports is equal to their salaries.

6. An economic rent that is paid to a factor of production is:

a. the opportunity cost of using the factor in the best alternative use.

b. a surplus payment to the factor over its opportunity cost.

c. a payment for the use of land.

d. payment for the use of factors whose supply is relatively elastic.

7. In the output market, the imperfectly competitive firm's demand for labor curve slopes downward and to the right because:

a. the wage rate paid to labor falls, so the quantity demanded of labor rises.

b. in order to sell additional units of its output, the firm must lower output price.

c. labor's marginal product falls as additional units of labor are hired to produce more output.

d. (b) and (c) are correct.

8. If an industry's demand curve for labor indicates that a change in wages will result in a very small change in the quantity demanded of labor, we would expect:

a. the demand curve for the industry's output to be inelastic.

b. a union supply of labor curve  to be inelastic.

c. an attempt by unions to restrict the supply of labor to result in many of its members being laid-off.

d. the demand curve for labor to be relatively flat.