Micro Chapter 14

The demand for airline pilots results from the demand for air travel. This fact is an example of

Which of the following statements best illustrates the concept of derived demand

A competitive employer should hire additional labor as long as:

In the United States professional football players earn much higher incomes than professional soccer players. This occurs because

Resource pricing is important because:

The labor demand curve of a purely competitive seller:

A firm will find it profitable to hire workers up to the point at which their:

A profit-maximizing firm employs resources to the point where:

Assume that a restaurant is hiring labor in an amount such that the MRC of the last worker is $16 and her MRP is $12. On the basis of this information we can say that:

The labor demand curve of an imperfectly competitive seller is downsloping:

A competitive employer is using labor in such an amount that labor's MRP is $10 and its wag rate is $8. This firm:

Which of the following will not cause a shift in the demand for resource X?

A decline in the price of resource A will:

Assume the price of capital falls relative to the price of labor and, as a result, the demand for labor increases. Therefore:

Which of the following will not shift the demand curve for labor?

Employers will hire more units of a resource if the:

Which of the following statements best illustrates the concept of derived demand?

When economists say that the demand for labor is a derived demand, they mean that it is:

The demand for airline pilots results from the demand for air travel. This fact is an example of:

The demand for a resource depends primarily on:

The marginal revenue product schedule is:

The MRP curve for labor:

The general rule for hiring any input (say, labor) in the profit-maximizing amount is MRC = MRP. This rule takes the special form W = MRP (where W is the wage rate) when the

Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by

Marginal resource cost is

The MRP curve is the resource demand curve for

If a firm is selling in an imperfectly competitive product market, then

Other things equal, we would expect the labor demand curve of a monopolistic seller to:

Suppose the demand for strawberries rises sharply, resulting in an increased price of strawberries. As it relates to strawberry pickers, we could expect the

Assume the price of capital falls relative to the price of labor and, as a result, the demand for labor increases. Therefore

The labor demand curve of a firm

Which of the following will not shift the demand curve for labor

If technology dictates that labor and capital must be used in fixed proportions, an increase in the price of capital will cause a firm to use

If resources A and B are complementary and employed in fixed proportions

Suppose capital and labor are used in fixed proportions so that each machine requires only one worker. If a decline in the price of capital occurs, then the demand for labor will

The demand curve for labor would shift leftward as the result of

A change in an input price will alter both production costs and the profit-maximizing output. Thus a decline in the price of capital will reduce production costs, increase the profit-maximizing output, and thereby increase the demand for labor. This describes the

If the price of capital declines, the consequent output effect would be

Suppose the price of the product that labor is producing increases and simultaneously the price of capital, which is substitutable for labor, decreases. Assuming that the substitution effect is greater than the output effect, the demand for labor

Which of the following occupations is not among the ten projected fastest growing U.S. occupations in terms of percentage increases

Which of the following occupations is projected to be the fastest growing in the U.S. in terms of percentage increases

The fact that monopoly and monopsony exist in resource markets means that

The marginal productivity theory of income distribution has been criticized because

According to the Consider This box "Superstars," the high pay of superstars reflects

Marginal revenue product (MRP) of labor refers to the

Marginal resource cost refers to the

If a firm is hiring a certain type of labor under purely competitive conditions

The market supply curve for labor is upsloping because

firm that is hiring labor in a purely competitive labor market and selling its product in a purely competitive product market will maximize its profit by hiring labor until

A profit-maximizing firm will

Indicate how the following events will shift the firm's demand curve for labor: increase it ( I ); decrease it ( D ); keep it the same ( S ) 1. ___ Technological advances increase labor's productivity. 2. ___ The wage rate increases. 3. ___ The demand for the product that labor produces decrease 4. ___ The wage rate decreases. 5. ___ Absenteeism reduces labor's productivity. 6. ___ The price of labor-saving machinery is reduced and the substitution effect is greater than the output effect