Resources – ECON 2302

14 December 2022
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The marginal _____ product represents the additional revenue generated from using an additional unit of a resource.
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Revenue
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Marginal Product
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The additional output produced as a result of utilizing 1 more unit of a variable resource (i.e., labor or capital).
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Marginal Revenue Product (MRP)
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The additional revenue generated as a result of utilizing 1 more unit of a variable resource (i.e., labor or capital).
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The marginal revenue product equals the:
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Change in the total revenue divided by the change in the resource quantity.
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Total Product
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The total amount of output produced with a given amount go resources.
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Which four broad categories of resources, or inputs of production, are used to produce goods and services?
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- Land - Capital - Labor - Entrepreneurial ability
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A firm should come to hire workers so long as the:
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Revenue they generate exceeds or equals their cost.
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In the circular-flow model, the two markets are the _____ market and the _____ market.
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Resource; product
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The marginal product is:
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Additional output as a result of utilizing one more unit of a variable resource.
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The marginal revenue product curve also represents the resource _____ curve.
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Demand
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The marginal revenue product associated with hiring one additional worker is:
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A downward-sloping line similar to the marginal product.
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Resource utilization and marginal resource costs move in _____ directions.
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Opposite
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When economists refer to resource demand being a derived demand, they mean that the demand for the resource:
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Depends on the demand for the goods and services produced by the resources.
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The additional cost incurred as a result of utilizing one more unit of variable resource is called the _____ ______ ______.
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Marginal resource cost
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The additional cost incurred as a result of utilizing one more unit if variable resource is called the _____ ______ ______.
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Marginal resource cost.
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For firms operating in perfectly competitive market, if the price of a product is constant, the marginal revenue product is equal to:
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The marginal product times the price.
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The optimal level of resource utilization ______ when the marginal resource cost increases.
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Decreases
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The resource demand curve is represented by the:
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Marginal revenue product curve.
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The demand for labor is derived from the:
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Additional total revenue generated by hiring additional employees or purchasing additional resources.
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The optimal level of resource utilization for a firm occurs where the marginal revenue product _____ the marginal resource cost.
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Equals
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The optimal level of resource utilization occurs where the:
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Marginal revenue product equals the marginal resource cost.
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The cost of an additional unit of resource, such as labor, is called the:
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Marginal resource cost.
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In deciding how many workers a business should employ,
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The marginal revenue product is key.
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For firms operating in perfectly competitive markets, if the price of a product is constant, the marginal revenue product is equal to the marginal ______ times the ______.
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Product; price
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For firms operating in perfectly competitive markets, if the price of a product is constant, the marginal revenue product is equal to:
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The marginal product times the price.
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The more productive an employee is, all else held constant,
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The higher employee's marginal revenue product will be.
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A firm will purchase a resource if:
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The benefit associated with the purchase is greater than or equal to its cost.
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When firms want to produce additional output, they make decision at the ______.
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Margin
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Which of the following are the choices that firms have for dealing with higher resource costs?
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- Lower employee wages to compensate for the additional expense. - Pay the additional costs, which has the effect of shifting the marginal resource cost curve up. - Deduct more from employees' paychecks to pay the higher costs.
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The cost of an additional unit of a resource, such as labor, is called the:
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Marginal resource cost.
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If the wage rate is constant, the marginal resource cost associated with hiring one additional worker is:
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A horizontal line at the wage.
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The marginal resource cost curve for the firm will not shift if:
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Employees fully pay higher resource cost.
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The payments name for ______ is wage.
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Labor
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The payment name for ______ is interest.
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Capital
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The marginal resource cost curve for the firm will shift if:
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Employers pay for part of or all higher resource costs.
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When firms want to produce additional output, they make decisions at the ______.
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Margin
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If the wage rate is constant, the marginal resource cost associated with hiring one additional worker is:
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A horizontal line at the wage.
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The marginal revenue product curve also represents the _____ demand curve.
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Resource
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If the price of the resource increases, there is:
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A decrease in the quantity of the resource demanded.