Questions 50 to 51 refer to the table below, which
describes employment and production of a firm.
UNITS OF TOTAL PRICE OF
LABOR PRODUCT OUTPUT
00$ 2
18$ 2
22 0$ 2
33 0$ 2
43 8$ 2
54 4$ 2- The marginal revenue product of the fourth
unit of labor is equal to
(A) $19.
(B) $16.
(C) $8.
(D) $20.
(E) $2.- If the wage paid to all units of labor is $20, how
many units of labor are employed?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5- An industry described as an oligopoly would
most likely have
(A) normal profits in the long run.
(B) no opportunities for collusive behavior.
(C) significant barriers to entry.
(D) price-taking behavior.
(E) one firm with no close rivals.- A minimum wage in the market for fast-food
workers is likely to produce
(A) an increase in the demand for fast-food
workers.
(B) a decrease in the supply of fast-food workers.
(C) a shortage of fast-food workers.
(D) a lower price of fast-food products.
(E) a surplus of fast-food workers.- In order to hire the least-cost combination of
labor and capital, the firm must do which of the
following?
(A) Find the combination of labor and capital
where the marginal product of labor is equal
to the marginal product of capital.
(B) Find the combination of labor and capital
where the ratio of the marginal product of
labor to the marginal product of capital is
equal to one.
(C) Find the combination of labor and capital
where the marginal product of labor
divided by the price of labor is equal to the
marginal product of capital divided by the
price of capital.
(D) Find the combination of labor and capital
where the price of labor is equal to the price
of capital.
(E) Find the combination of labor and capital
where the marginal revenue product of
labor is equal to the marginal revenue prod-
uct of capital.- More college students are graduating with BA
degrees in economics. Given this trend, we
would expect the wage of economists, the
employment of economists, and the demand for
economics textbooks to change in which of the
following ways?
DEMAND
EMPLOYMENT FOR
ECONOMIST OF ECONOMICS
WAGES ECONOMISTS TEXTBOOKS
(A) Decrease Increase Increase
(B) Decrease Decrease Decrease
(C) Increase Decrease Decrease
(D) Increase Decrease Increase
(E) Increase Increase Increase176 › Step 5. Build Your Test-Taking Confidence
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