Practice Test 18 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Labor markets are different from most other markets because labor demand is a. represented by a vertical line on a supply-demand diagram. b. represented by an upward-sloping line on a supply-demand diagram. c. such an elusive concept. d. derived. ____ 2. How much of the income in the United States is in the form of wages and fringe benefits? a. more than 90 percent b. about 75 percent c. about 50 percent d. less than 75 percent ____ 3. The value of the marginal product of any input is equal to the marginal product of that input multiplied by the a. additional revenue. b. …show more content…
Figure 18-4 ____ 14. Refer to Figure 18-4. The shift of the labor demand curve from D1 to D2 could possibly be explained by a. technological progress. b. an increase in the price of firms ' output. c. an increase in the supply of a relevant factor of production other than labor. d. All of the above are correct. ____ 15. Owners of land are compensated according to the a. absolute level of production from the land. b. number of laborers the land can support. c. purchase price of the land stock. d. value of the marginal product of land. ____ 16. Because of diminishing returns, a factor in abundant supply has a. a high marginal product and a high rental price. b. a high marginal product and a low rental price. c. a low marginal product and a high rental price. d. a low marginal product and a low rental price. ____ 17. If the government designates certain areas within a community to be "wetlands," and therefore illegal to build upon, what happens to land not classified as "wetlands" within the community? (i) The price of non-wetland land will rise. (ii) The marginal product of non-wetland land will fall. (iii) The marginal product of non-wetland land will rise. a. (i) and (ii) b. (ii) and (iii) c. (i) and (iii) d. (ii) only ____ 18. With regard to capital, it is important to distinguish between a. the supply price of capital and the demand price of capital. b. the rental price
Identify the letter of the choice that best completes the statement or answers the question.
Disregard the new tax from number three. Now assume the government imposes a price ceiling of $100 in this market, as the result of protest of price gouging by sellers. What would happen to the price and quantity in this market?
Using the data and your own economic knowledge, assess the case for financing universities mainly through charging fees to their students.
A corporate business enterprise is established under a specific legal framework where laws governing the operations and functioning of the enterprise are outlined. The activities of the enterprise are monitored and therefore such an enterprise is recognized by law. This is important due to the fact that legal suits can be filed by the enterprise within the provisions of the law.
Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta:
Identify the letter of the choice that best completes the statement or answers the question.
In the Private Sector, there are many choices to be made by Business managers regarding which “projects” to borrow for and which “projects” to invest in. These choices often contain a great deal of ______________________ as well as the potential for benefits (profits).
Despite the city’s positive response to the coffee shop’s renovation, other businesses in the area have not followed suit in renovating the many decrepit buildings and abandoned lots. How might the presence of an externality be in part the cause of this?
1. College logo t-shirts priced at $15 sell at a rate of 25 per week, but when the bookstore marks them down to $10 it finds that it can sell 50 t-shirts per week. What is the price elasticity of demand for the logo t-shirts? Is the demand elastic or inelastic?
This assignment has a maximum total of 100 marks and is worth 10% of your total grade for this course. You should complete it after completing your course work for Units 1 through 5. Answer each question clearly and concisely.
Describe what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services