Ch. 12 Microeconomics
CHAPTER 12 Microeconomics
The Demand for Resources
Topic Question numbers
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1. Derived demand 1-8
2. Resource demand curve; optimal hiring 9-59
3. Determinants of resource demand 60-97
4. Elasticity of resource demand 98-114
5. Optimal combination of resources 115-145
6. Marginal productivity theory of income distribution 146-149 Consider This 150-151 Last Word 152-154 True-False 155-170
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Multiple Choice Questions
Derived demand
Type: F Topic: 1 E: 504-505 MI: 260-261 1. Resource pricing is important because: A) resource prices are a major determinant of money incomes. B) resource prices allocate scarce resources among alternative uses. C) resource prices, along with resource productivity, are important to firms in minimizing their costs. D) of all of the above reasons.
Answer: D
Type: A Topic: 1 E: 505 MI: 261 2. Which of the following statements best illustrates the concept of derived demand? A) As income goes up the demand for farm products will increase by a smaller relative amount. B) A decline in the price of margarine will reduce the demand for butter. C) A decline in the demand for shoes will cause the demand for leather to decline. D) When the price of gasoline goes up, the demand for motor oil will decline.
Answer: C
Type: D Topic: 1 E: 505 MI: 261 3. When economists say that the demand for labor is a derived demand, they mean that it is: A) dependent on government expenditures for public goods and services. B) related to the demand for the product or service labor is producing. C) based on the desire of businesses to exploit labor by paying below equilibrium wage rates. D) based on the assumption that workers are
The Demand for Resources
Topic Question numbers
___________________________________________________________________________________________________
1. Derived demand 1-8
2. Resource demand curve; optimal hiring 9-59
3. Determinants of resource demand 60-97
4. Elasticity of resource demand 98-114
5. Optimal combination of resources 115-145
6. Marginal productivity theory of income distribution 146-149 Consider This 150-151 Last Word 152-154 True-False 155-170
___________________________________________________________________________________________________
Multiple Choice Questions
Derived demand
Type: F Topic: 1 E: 504-505 MI: 260-261 1. Resource pricing is important because: A) resource prices are a major determinant of money incomes. B) resource prices allocate scarce resources among alternative uses. C) resource prices, along with resource productivity, are important to firms in minimizing their costs. D) of all of the above reasons.
Answer: D
Type: A Topic: 1 E: 505 MI: 261 2. Which of the following statements best illustrates the concept of derived demand? A) As income goes up the demand for farm products will increase by a smaller relative amount. B) A decline in the price of margarine will reduce the demand for butter. C) A decline in the demand for shoes will cause the demand for leather to decline. D) When the price of gasoline goes up, the demand for motor oil will decline.
Answer: C
Type: D Topic: 1 E: 505 MI: 261 3. When economists say that the demand for labor is a derived demand, they mean that it is: A) dependent on government expenditures for public goods and services. B) related to the demand for the product or service labor is producing. C) based on the desire of businesses to exploit labor by paying below equilibrium wage rates. D) based on the assumption that workers are