Question :
11) Which of the following represents a derived demand? Demand : 1226316
11) Which of the following represents a derived demand? Demand for
A) a taco by Sam when she is hungry.
B) golf balls by Jose, who is planning on going golfing with his boss.
C) a grocery clerk by the local Safeway.
D) an automobile by Jack, who wants a car to get to school.
E) new clothing by Shaniq, who is starting a new job.
12) The demand for carpenters needed to build houses represents a
A) direct demand.
B) derived demand.
C) marginal demand/cost for input.
D) supplied demand.
E) directed supply.
13) If the demand for a good increases, the demand for the factors used to produce the good
A) increases.
B) decreases.
C) stays the same.
D) could increase, decrease, or stay the same depending on whether the demand for the good is elastic, inelastic, or unit elastic.
E) None of the above answers is correct.
14) The value of the marginal product is equal to
A) marginal product × marginal cost.
B) marginal product × product price.
C) marginal revenue × marginal cost.
D) marginal cost × product price.
E) marginal product ÷ product price.
15) The value of the marginal product of labor is calculated by multiplying the ________ by the ________.
A) quantity of labor; wage rate
B) total product; wage rate
C) marginal product of labor; price of a unit of the output
D) wage rate; price of a unit of the output
E) marginal product of labor; wage rate
16) The value of marginal product is equal to the
A) additional revenue from selling one more unit of the product.
B) change in total revenue from selling one more unit of product.
C) additional cost of hiring one more unit of a factor of production.
D) change in revenue from hiring one more unit of a factor of production.
E) change in total cost when one more unit of the product is produced.
17) If UPS hires another worker, UPS will be able to deliver an additional 20 packages an hour. The price of each package is $5. The value of this worker’s marginal product is equal to
A) $5.
B) $100.
C) $4.
D) 20 packages.
E) $20.
18) The total output of candles in Nick’s Wicks candle shop increases from 20 per hour to 30 per hour as he hires the second worker. The price of each candle is $2. The
A) marginal product of the second worker is 20 candles.
B) marginal product of the second worker is 30 candles.
C) value of marginal product of the second worker is $20.
D) value of marginal product of the second worker is $30.
E) value of marginal product of the second worker is $60.
19) The value of marginal product of labor
A) always increases as more labor is hired.
B) is constant as long as each worker is paid the same wage rate.
C) declines only if each worker is paid more than the previous worker.
D) at some point declines as more workers are hired.
E) at first decreases and then increases as more workers are hired.
20) As the quantity of land used increases, its value of marginal product
A) decreases and then eventually increases.
B) increases and then eventually decreases.
C) remains constant.
D) might increase, decrease, or remain constant depending if the rent for the land rises, falls, or does not change.
E) The premise of the question is wrong because land does not have a value of marginal product.
