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PRINCIPLES OF MICROECONOMICS
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ECO 365 Entire Course Link
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Labor productivity increases.
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The cost of capital (a substitute for labor) decreases.
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The price of earrings increases.
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The wage rate increases.
Marginal product is
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the output of the least skilled worker.
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the amount an additional worker adds to the firm's total
output.
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the amount any given worker contributes to the firm's
total revenue.
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a worker's output multiplied by the price at which each
unit can be sold.
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marginal product.
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average revenue product.
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marginal revenue.
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marginal revenue product.
Marginal revenue product measures the
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increase in total revenue resulting from the production of
one more unit of a product.
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increase in total resource cost resulting from the hire of
one extra unit of a resource.
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amount by which the extra production of one more
worker increases a firm's total revenue.
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decline in product price that a firm must accept to sell the
extra output of one more worker.
If the marginal revenue product (MRP) of labor is less
than the wage rate
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more labor should be employed.
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the firm is making profits.
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the firm is incurring losses.
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less labor should be employed
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MRP = MRC.
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resource price equals product price.
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MRC = MP.
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MP = product price.
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2
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4
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5
Marginal resource cost is
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the increase in total resource cost associated with the
production of one more unit of output.
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total resource cost divided by the number of inputs
employed.
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the change in total revenue associated with the
employment of one more unit of the resource.
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the increase in total resource cost associated with the hire
of one more unit of the resource.
Daphne has received job offers in six different cities
across the United States. The table below shows the
nominal wage she is being offered in each city and the
average monthly rent for an apartment in each city.
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A decrease in people’s income decreases the demand for
solar panels.
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A solar panel company shuts down in another town and
solar panel installers try to find jobs in Billy’s town.
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Wages of solar panel installers increase in another town
and attract workers away from Billy’s town.
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An increase in the demand for solar panels raises the
price of each installation.
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more of the input is used.
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productivity increases.
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the price of the input decreases.
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the price of output increases.
Rising wages can be explained by which of the
following?
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Labor demand increases more rapidly than labor supply.
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Labor supply is highly sensitive to changes in labor
productivity.
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Labor supply increases more rapidly than labor demand.
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Labor demand is stable and predictable.
Suppose two workers can harvest $46 and three workers
can harvest $60 worth of apples per day. On the basis of
this information we can say that the
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marginal revenue product of each of the first two workers
is $23.
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marginal revenue product of the third worker is $14.
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marginal product of each of the first two workers is 23.
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third worker should not be hired.
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the demand for the product.
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the wage rate.
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the marginal product.
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whether or not a union forms.
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increases; decreases
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decreases; increases
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increases; increases
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decreases; decreases
An inclusive union
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organizes a wide range of workers in an industry to gain
bargaining power.
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is most effective in a purely competitive industry.
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restricts supply of labor through licensing requirements.
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is most concerned with increasing the demand for
workers in an industry.
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higher wages must be paid to bid workers away from
other opportunities.
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marginal resource cost rises as productivity increases.
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the marginal product of labor falls as output increases.
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the wage rate paid to workers falls as more are hired.
Compared to a competitive labor market, workers
participating in an inclusive union will enjoy
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higher wages and more workers employed.
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higher wages and fewer workers employed.
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similar outcomes with respect to pay and employment.
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lower pay and more workers employed.
The concept of "wages" does not include which of the
following items?
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money spent by workers
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direct money payments, like salaries and commissions
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bonuses and royalties earned
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fringe benefits, like health insurance and paid leave
Use the following graph (where L is the quantity of
labor) to answer the next question.
It shows a firm that buys its inputs and sells its output in
competitive markets. If the firm develops a new
technology that increases labor productivity, the
equilibrium level of employment for this firm is expected
to be
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lower than L0.
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L0.
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zero.
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higher than L0.
The individual firm that hires labor under competitive
conditions faces a labor supply curve that
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is horizontal, because individual firms have no control
over wages.
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slopes upward to the right.
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is vertical, because workers need a job at any wage.
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slopes downward to the right.
In a purely competitive labor market, a profit-
maximizing firm will hire labor up to the point where the
marginal revenue product of labor equals the
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marginal cost of one extra unit of output.
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price of the product.
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average cost of each unit of output.
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wage rate, or the price of labor.
For each of the following scenarios, determine which
benefit of international trade applies: lower-priced goods,
increased variety of products, or access to scarce
resources.
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concentrate production on those products for which it has
the lowest domestic opportunity cost.
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strive to be self-sufficient in the production of essential
goods and services.
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maximize its volume of trade with other nations.
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use tariffs and quotas to protect the production of vital
products for the nation.
Use the following table for a certain product’s market in
Marketopia to answer the next question.
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$6 and 1,400 units.
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$9 and 2,000 units.
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$7 and 2,000 units.
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$8 and 1,800 units.
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resource availability.
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technological capabilities.
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product quality and other attributes.
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income levels.
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import quotas.
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nontariff barriers.
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protective tariffs.
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export subsidies.
Governments often intervene in international trade and
impose quotas to
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improve the performance of multinational corporations.
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shift a nation's production possibilities frontier.
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increase revenues from export subsidies.
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protect domestic industries from foreign competition.
An import quota on a product reduces the quantity of the
product imported and
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will not affect the price of the product to the consumers.
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increases the total quantity of the product consumed.
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decreases the price of the product to the consumers.
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increases the price of the product to the consumers.
Tariffs
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are excise taxes on goods exported abroad.
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are per-unit subsidies designed to promote exports.
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may be imposed either to raise revenue or to shield
domestic producers from foreign competition.
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are also called import quotas.
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decrease in quantity supplied and an increase in the price
of the product.
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decrease in demand and a decrease in the price of the
product.
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decrease in the supply of, and an increase in the quantity
demanded of, the product.
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increase in the quantity supplied of, and a decrease in the
price of the product.
A tariff is a
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quantity limit.
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tax.
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price ceiling.
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subsidy.
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a voluntary restriction.
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a regulatory trade restriction.
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a tariff.
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a quota.
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voluntary export restriction.
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tariff.
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quota.
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nontariff barrier.
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experience lower prices and consume lower quantities.
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experience higher prices and consume lower quantities.
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experience higher prices and consume higher quantities.
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experience lower prices and consume higher quantities.
The ratio at which nations will exchange one product for
another is known as the
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exchange rate.
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discount rate.
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terms of trade.
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balance of trade.
The higher price of imported products due to trade
barriers causes some consumers to shift their purchases
to a domestically produced product that is now
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higher in price because import competition has risen.
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higher in price because import competition has declined.
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lower in price because import competition has declined.
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lower in price because import competition has risen.
The use of tariffs and quotas for trade protection results
in
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less rent-seeking activity.
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lower prices for domestic consumers.
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less efficiency in the economy.
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less revenue for the government.
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experience higher prices and consume lower quantities.
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experience lower prices and consume lower quantities.
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experience lower prices and consume higher quantities.
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experience higher prices and consume higher quantities.
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is much greater than the costs to the whole American
economy.
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has risen in recent years.
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is much less than the costs to the whole American
economy.
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has fallen in recent years.
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the government.
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domestic producers.
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foreign exporters.
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domestic consumers.
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can produce either 40 units of rye or 20 units of eggs.
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cannot produce both 20 units of rye and 5 units of eggs.
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cannot produce both 20 units of rye and 10 units of eggs.
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can produce both 40 units of rye and 20 units of eggs.
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percentage change in quantity demanded/percentage
change in price.
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percentage change in price/percentage change in quantity
demanded.
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absolute decline in quantity demanded/absolute increase
in price.
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absolute decline in price/absolute increase in quantity
demanded.
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negative.
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positive.
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zero.
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unknown.