CH 11 12 13: Revision
CHAPTER 11
Factor markets determine payments for labor as well as land, capital and ___________________. entrepreneurship
With the substitution effect an individual will substitute their time between leisure and work, choosing to work more and take less leisure when wages ______________. increase
The difference between the substitution effect and the __________ effect is called the net effect. output
The demand curve of a competitive producer falls because of decreases in MP with increases in the number of workers. TRUE
In the production of DVD’s if the price of the labor, land, or equipment changes, then each of the other two factors are subject to a change (shift) in demand.In the production of DVD’s if the price of the labor, land, or equipment changes, then each of the other two factors are subject to a change (shift) in demand. TRUE
If the productivity of a factor increases, the value of that input increases. TRUE
Product markets exchange business production for ____________ . Sales receipts
If inputs are used together, then an increase in the demand for one input will cause a decrease in the demand for the complementary input. FALSE
A firm would operate for maximum profit where the MFC = _________. MRP
If a decrease in the price of cars decreases the marginal revenue product of auto workers, then _____________ in the demand for their labor will occur. a decrease
In recent years non-farm business productivity has been _____________ percent on a three year average. less than 2
The demand for labor to raise and harvest corn is an ___________ relationship between price of farm labor, interest, rent, profit, and the quantity of corn demanded. indirect
An example of ______________ is farm labor as derived from the demand for corn. derived demand
As the price for labor drops in a competitive firm, _________ labor resources are added when compared with the case of an imperfectly competitive firm. more
If an increase in the price of cars increases the
Factor markets determine payments for labor as well as land, capital and ___________________. entrepreneurship
With the substitution effect an individual will substitute their time between leisure and work, choosing to work more and take less leisure when wages ______________. increase
The difference between the substitution effect and the __________ effect is called the net effect. output
The demand curve of a competitive producer falls because of decreases in MP with increases in the number of workers. TRUE
In the production of DVD’s if the price of the labor, land, or equipment changes, then each of the other two factors are subject to a change (shift) in demand.In the production of DVD’s if the price of the labor, land, or equipment changes, then each of the other two factors are subject to a change (shift) in demand. TRUE
If the productivity of a factor increases, the value of that input increases. TRUE
Product markets exchange business production for ____________ . Sales receipts
If inputs are used together, then an increase in the demand for one input will cause a decrease in the demand for the complementary input. FALSE
A firm would operate for maximum profit where the MFC = _________. MRP
If a decrease in the price of cars decreases the marginal revenue product of auto workers, then _____________ in the demand for their labor will occur. a decrease
In recent years non-farm business productivity has been _____________ percent on a three year average. less than 2
The demand for labor to raise and harvest corn is an ___________ relationship between price of farm labor, interest, rent, profit, and the quantity of corn demanded. indirect
An example of ______________ is farm labor as derived from the demand for corn. derived demand
As the price for labor drops in a competitive firm, _________ labor resources are added when compared with the case of an imperfectly competitive firm. more
If an increase in the price of cars increases the