Economic Quiz
AmazingExpert
question1.docx1.
Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. To maximize profits, the firm should
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a. |
hire more labor. |
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b. |
maintain the current level of labor. |
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c. |
reduce the level of labor. |
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d. |
shut down. |
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8 points
Question 2
1.
Outsourcing is being practiced by
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a. |
U.S. firms that want to keep jobs at home in the United States. |
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b. |
overseas firm tapping into the U.S. labor market and by U.S. firms looking for overseas labor markets with lower wages. |
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c. |
U.S. firms only. |
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d. |
governments but private firms are not allowed to outsource work. |
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8 points
Question 3
1.
Revenue marginal product is
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a. |
marginal physical product multiplied by marginal revenue. |
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b. |
marginal physical product multiplied by average variable cost of the product. |
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c. |
the price of the product. |
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d. |
the total revenue from the sale of the product sales. |
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9 points
Question 4
1.
An increase in the supply of labor generates
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a. |
increased unemployment. |
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b. |
lower wages. |
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c. |
an offsetting increase in the demand for labor. |
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d. |
a decrease in the quantity demanded of labor. |
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8 points
Question 5
1.
The marginal revenue product curve shifts when
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a. |
wages fall. |
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b. |
there is a change in the product price workers are producing. |
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c. |
wages rise. |
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d. |
the wages paid exceed the price. |
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8 points
Question 6
1.
In the above figure, the competitive firm will employ the quantity of labor
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a. |
equal to Lc. |
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b. |
equal to Lb. |
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c. |
less than Lb. |
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d. |
greater than Lc. |
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9 points
Question 7
1.
The firm's demand curve for labor is
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a. |
the marginal revenue product curve for labor. |
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b. |
the demand curve for the good produced divided by the price of the good. |
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c. |
the marginal physical product curve for labor divided by the price of the good. |
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d. |
the marginal physical product curve for labor multiplied by the price of labor. |
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9 points
Question 8
1.
A firm will not hire additional workers once
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a. |
it earns accounting profits. |
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b. |
the additional cost of a worker equals the additional revenue from the worker. |
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c. |
total product is rising. |
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d. |
the company reaches its breakeven output level. |
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8 points
Question 9
1.
According to the above table, if the wage rate is $400 a week and the price of the good produced is $5, the perfectly competitive firm should hire
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a. |
6 workers. |
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b. |
4 workers. |
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c. |
3 workers. |
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d. |
5 workers. |
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9 points
Question 10
1.
The additional revenue earned from hiring one more worker is known as the
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a. |
marginal utility of labor. |
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b. |
marginal physical product of labor. |
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c. |
marginal factor cost of labor. |
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d. |
marginal revenue product of labor. |
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8 points
Question 11
1.
When U.S. computer companies hire workers in India to staff their customer service call centers, they are engaging in
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a. |
predatory pricing. |
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b. |
unfair trade practices. |
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c. |
outsourcing. |
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d. |
labor engagement. |
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8 points
Question 12
1.
The change in total output due to the change in one variable input, while holding all other inputs constant, is the
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a. |
marginal revenue product. |
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b. |
derived demand for labor. |
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c. |
marginal physical product. |
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d. |
market demand curve for labor. |
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