Marginal Resource Cost (MRC) can best be defined as...

the change in total cost per additional resource used

a wage maker because they are the only employer

What are the Four Factors of Production?

Land, Labor, Entrepreneurship, Capital

A firm hires workers for a new plant w/ fixed amount of machines. As firm hires more workers, marginal product will...

rise initially, but eventually fall

Marginal Revenue Product (MRP) can best be defined as...

the change in total revenue per additional product produced

wage floor that oftentimes increases unemployment

The least cost rule is...

the combination of labor and capitol that minimizes cost

A firm's demand for labor is known as a derived demand because

the amount of labor demanded depends on the demand for the firm's product

For a competitive labor market, an increase in which of the following will lead to an increase in the demand for labor?

The demand for the good that labor produces

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AP Micro Unit 5 Review

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A Review of Unit 5 of AP Microeconomics

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Questions 21

Answers

1
T or F: Education and Training shifts the supply of Labor
False
True
2
Marginal Resource Cost (MRC) can best be defined as...
the change in total cost per additional product produced
the change in total cost per additional resource used
the change in total revenue per additional product produced
the change in total revenue per additional resource used
3
A monopsony is...
a wage maker because they are the only employer
a wage taker because they are the only employer
a surgical incision made prior to an operation
when labor supplied is equal to labor demanded
4
What happens to the wage and quantity in the market and firm if new workers enter the industry?
Q up W up
Q down W up
Q up W down
Q down W down
5
To maximize profit, firms will produce where...
MRP and MRC are unrelated to production
MRP > MRC
MRP < MRC
MRP = MRC
6
What are the Four Factors of Production?
Robots, Land, Labor, Mr. B
Land, Labor, Capital, Wages
Land, Labor, Business, Humans
Land, Labor, Entrepreneurship, Capital
7
T or F: "Leisure Preferences" legitimately shift the supply of labor
False
True
8
Identify the wage and quantity of labor that would be hired by this monopsony
Wage: $12 Quantity: Q2
Wage: $9 Quantity: Q3
Wage: $9 Quantity: Q2
Wage: $12 Quantity: Q3
9
For Monopsonies, MRC equals Supply
False
True
10
Which of the following is not a shifter of the supply of labor?
Consumer income
Working Conditions
Education & Training
Availability of alternative options
11
AP Question
D
A
E
B
12
A firm hires workers for a new plant w/ fixed amount of machines. As firm hires more workers, marginal product will...
Economics is capitalist indoctrination
fall initially, but eventually rise
rise initially, but eventually fall
rise consistenly due to specialization
13
Marginal Revenue Product (MRP) can best be defined as...
the change in total cost per additional resource used
the change in total revenue per additional resource used
the change in total revenue per additional product produced
the change in total cost per additional product produced
14
An increase in the minimum wage will have less of an impact on employment if the demand for labor is...
Quasi-Elastic
Relatively Inelastic
Relatively Elastic
Decreasing
15
Minimum Wage is a...
wage ceiling that oftentimes increases unemployment
wage floor that oftentimes increases unemployment
wage floor that oftentimes decreases unemployment
wage ceiling that oftentimes decreases unemployment
16
The least cost rule is...
a specific type of wage floor
a method consumers utilize to lower market prices
the combination of labor and capitol that minimizes cost
a rule that say everything must at "least cost" something.
17
Firms in a perfectly competitive labor market are...
Wage Oatmeal
Wage Bakers
Wage Makers
Wage Takers
18
When does the Law of Diminishing Marginal Utility kick in?
After the 1st worker
After the 2nd worker
After the 4th worker
After the 3rd worker
19
A firm's demand for labor is known as a derived demand because
the firm will benefit from hiring additional labor
the amount of labor demanded depends on amount of capital invested
the amount of labor demanded depends on the demand for the firm's product
the wage paid to workers depends on the demand for labor
20
For a competitive labor market, an increase in which of the following will lead to an increase in the demand for labor?
Supply of labor
Minimum wage
Labor union dues
The demand for the good that labor produces
21
In a monopsony, the relationship between MRC and wage can be defined as...
Unequal
Equal

AP Micro Unit 5 Review Flashcards | StudBud