Pennsylvania State University - ECON 102Quiz 03. All Correct answers Reviewed and indicated. 100% Score.

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ECON 102 Quiz 6 Question 1 1 / 1 pts The factors of production are the outputs resulting from a production process the incomes paid to the owners of land and capital Correct! ... the inputs used in the production of goods and services entrepreneurship, land, wages and machinery The factors of production are land, labor capital and entrepreneurship. These inputs are used to produce goods and services. Question 2 1 / 1 pts If the wage is larger than the marginal revenue product of labor then the profit maximizing firm will Correct! reduce the amount of workers hired increase the amount of workers hired leave the number of workers hired unchanged reduce the wage If the wage is greater than the revenue the last worker is bringing into the firm, the firm will reduce the amount of labor hired. Question 3 0 / 1 pts The graph above represents Correct Answer the marginal product of labor the average cost of production You Answered the marginal revenue product of labor the marginal cost of production This is a graph of the marginal product of labor since output (Q) is on the vertical axis. Question 4 0 / 1 pts Consider the table above. What is the marginal profit of the 2nd worker? $60 $10 You Answered $6 Correct Answer $30 The marginal profit is equal to the MRP of labor minus the wage. Question 5 1 / 1 pts Consider the table above. What is the marginal product of the 5th worker? Correct! 2 3 5 20 The marginal product of labor is calculated as the change in output divided by the change in labor. Question 6 1 / 1 pts The marginal product of labor eventually slopes downward due to diminishing marginal costs diminishing average returns diminishing marginal utility Correct! the law of diminishing marginal productivity The marginal product of labor eventually declines according to the law of diminishing marginal returns (productivity). Question 7 1 / 1 pts This year a large number of Canadians immigrated to the United States. What has happened to the labor supply for both countries? The labor supply for both countries increased Correct! The labor supply for Canada decreased and for the U.S. the labor supply increased The labor supply for Canada increased and for the U.S. the labor supply decreased The labor supply for both countries decreased Since workers moved out of Canada and into the U.S., the labor supply in Canada fell and it increased in the U.S. Question 8 1 / 1 pts A pure rent is the return paid to land the return paid to land and capital Correct! the return paid to a factor of production that is fixed in supply the return paid to capital A pure rent is the return to any factor of production that is in fixed supply. Question 9 1 / 1 pts When a firm is hiring capital, labor and land for its production process, the cost minimization condition is PL = PK=PA MPL = MPK = MPA Correct! MPL/PL = MPK/PK=MPA/PA all of the above are equivalent The profit maximization condition for a firm using multiple inputs is MPL/PL = MPK/PK = MPA/PA. Question 10 1 / 1 pts Input demand curves slope downward due to the output effect of a factor price increase factor substitution effect output effect of a factor price decrease Correct! all of the above Both the factor substitution effect and the output effects of a factor price change help explain the shape of the input demand curve. Quiz Score: 8 out of 10 [Show More]

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