1.) Physical capital is best exemplified by

a.) training programs

b.) a fork lift

c.) a river

d.) coal

e.) strong workers

2.) How would the productivity of labor change if a firm provides their labor with insightful training programs?

a.) The labor supply curve would shift to the left.

b.) Labor supply would not change.

c.) Labor productivity would not change.

d.) Labor productivity would increase.

e.) Labor productivity would decrease.

3.) Which factor is not likely to be purchased in an easily identifiable factor market?

a.) land

b.) labor

c.) capital

d.) entrepreneurship

e.) All factors are likely to be purchased in an easily identifiable factor market.

4.) The explicit cost of capital purchased by a firm is called

a.) the wage rate.

b.) the rental rate.

c.) the purchase price.

d.) the interest rate.

e.) the firms marginal cost.

5.) The implicit cost of land owned by a firm is called

a.) the wage rate.

b.) the rental rate.

c.) the purchase price.

d.) the interest rate.

e.) the firms marginal cost.

6.) The cost of labor employed by a firm is called

a.) the wage rate.

b.) the rental rate.

c.) the purchase price.

d.) the interest rate.

e.) the firms marginal cost.

7.) Which of the following is true?

a.) Product market demand is derived from the factor market.

b.) Factor market demand is derived from the rental rate of capital.

c.) Product market demand is derived from the productivity of labor.

d.) Factor market demand is derived from the aggregate cost of inputs.

e.) Factor market demand is derived from the product market.

8.) Derived demand is exemplified in which of the following?

a.) The salary of computer techs rise, resulting in a decrease in supply and an increase in demand.

b.) The salary of computer techs fall, resulting in an increase in supply and a decrease in demand.

c.) Consumers want computers, so producers raise the price of computers.

d.) Consumers want faster computers, so technology firms invest in capital and labor.

e.) None of the above

9.) Demand for capital

a.) is a derived demand.

b.) is always greater for human than physical.

c.) is dependent on the interest rate.

d.) is modeled in the product market.

e.) is more elastic than the demand for land.

10.) Of the following factors, which will have a quantity that is likely to be less responsive to price changes?

I. capital

II. labor

III. land

a.) I only

b.) II only

c.) III only

d.) I and II only

e.) I, II, and III

Answer rating: 100% (QA)

1 A 2 D ... View the full answer