Economics Final Exam [Chap. 18,24]

labour, land, and capital.

water, earth, and knowledge.

money, stocks, and bonds.

management, finance, and marketing.

cause a reduction in output.

have no effect on output.

increase the marginal product of the factor.

generate ever smaller amounts of output.

the price of the output times the wage of labour.

the price of the output times the marginal product of labour.

none of these answers.

the wage of labour times the quantity of labour.

the wage of labour times the marginal product of labour.

supply curve of capital.

demand curve for capital.

production function.

marginal cost curve.

increases the value of the marginal product of labour and decreases the wage.

decreases the value of the marginal product of labour and decreases the wage.

decreases the value of the marginal product of labour and increases the wage.

increases the value of the marginal product of labour and increases the wage.

decreases the value of the marginal product of fishermen, reduces their wage, and reduces employment in the fishing industry.

increases the value of the marginal product of fishermen, increases their wage, and increases employment in the fishing industry.

decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry.

increases the value of the marginal product of fishermen, increases their wage, and decreases employment in the fishing industry.

increase the demand for fishing boats and decrease rental rates on fishing boats

decrease the demand for fishing boats and increase rental rates on fishing boats

decrease the demand for fishing boats and decrease rental rates on fishing boats

increase the demand for fishing boats and increase rental rates on fishing boats

a decrease in the number of apple pickers employed

an increase in the value of the marginal product of apple pickers

an increase in the price of apples

an increase in the wage of apple pickers

an increase in the rental rate for tractors

a decrease in the rental rate of farmland

an increase in the value of the marginal product of tractors

an increase in the wage of farm workers

an amount equal to the price of output times total output.

the amount allocated by the political process.

an equal share of output.

the value of its marginal product.

slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby reducing the value of the marginal product as more of the factor is used.

slopes downward due to the factor's diminishing marginal product.

slopes upward due to the factor's increasing marginal product.

is perfectly elastic (horizontal) if the factor market is perfectly competitive.

decreases the prosperity of the firm but increases the prosperity of the factors hired by the firm.

decreases the prosperity of both the firm and the factors hired by the firm.

increases the prosperity of both the firm and the factors hired by the firm.

increases the prosperity of the firm but decreases the prosperity of the factors hired by the firm.

the wage, the rental price of capital, and the rental price of land are all equal.

the marginal product of labour equals zero and the production function is maximized.

the value of the marginal product of labour equals the wage.

the marginal product of labour equals the wage.

have skills that are in relatively scarce supply.

produce output for which there is great demand.

are usually highly paid.

usually have little capital with which to work.

left and decreases the wage.

right and decreases the wage.

right and increases the wage.

left and increases the wage.

interest.

dividends.

increases in stocks of goods.

retained earnings.

Wages rise and rental rates fall.

Wages rise and rental rates rise.

Wages fall and rental rates rise.

Wages fall and rental rates fall.

Indifference curves for perfect substitutes are bowed inward.

Indifference curves for perfect complements are shaped as right angles.

The typical indifference curve is a straight line.

The typical indifference curve is upward sloping.

older, more experienced workers are paid more than younger workers.

coal miners are paid more than other workers with similar skills, due to higher risk.

night shift workers are paid more than day shift workers, due to workers desire to work daytime.

law professors are paid less than practicing lawyers, due to greater job satisfaction.

Traffic lights.

Changes in wages due to changes in the demand and the supply of labor.

Getting a college education to demonstrate the possession of high ability.

Showing a 'can do' attitude on the first day on a new job.

many firms will want to pay wages above the prevailing market equilibrium wages.

firms will pay their workers a wage exactly equal to the value of the marginal product of labor.

firms will seek to not pay their workers a single cent more than they have to.

labor unions will force firms to pay higher wages than they want to.

only to workers in the short run.

applies to workers and any other variable inputs in the short run.

only to workers in the long run.

applies to workers and any other variable inputs in the long run.

fewer hours per week, since she can earn the same income working fewer hours.

more hours per week, since she can earn the same income working fewer hours.

fewer hours per week, since every hour of leisure is cheaper than before.

more hours per week, since she needs to work more hours to earn the same income.

more, rise

more, drop

less, rise

less, drop

rises, decrease

diminishes, decrease

diminishes, increase

rises, increase

the wage rate.

the value of the marginal product of that input.

the price of the product sold by the firm that inputs.

the price of the product sold by the firm that buys the inputs.

GDP deflator

producer price index

consumer price index

minimum wage

consumers buy most frequently.

has experienced the greatest price increase.

has the highest price.

consumers spend the largest fraction of their income on.

Some goods experience large price changes and the CPI would be too variable if
computed by a simple average.

Goods differ in their importance in the average consumer's budget.

Some goods never experience price changes and the CPI would not be variable enough if
computed as a simple average.

It would be difficult to compute a price index using a simple average of all prices.

is one factor that causes the CPI to underestimate the inflation rate.

is caused by the poor quality of many imported products.

is one of the primary causes of inflation

involves consumer behaviour that helps explain why the CPI overestimates the inflation
rate.

cause the CPI to overstate actual inflation.

cause the CPI to understate actual inflation

are accounted for in the CPI.

are insignificant and thus would not affect the CPI even if accounted for.

the tendency of consumers to substitute relatively cheaper goods for those that have
become relatively more expensive.

political pressure from unions and retirees on the providers of a country’s official
statistics to overstate the inflation rate

the introduction of new technologies that make it easier to obtain the same standard of
living

improvements over time on the quality of products

uses base year quantities of goods to weight prices

uses current year quantities of goods to weight prices.

is not a weighted price index.

always indicates a higher rate of inflation than the GDP deflator.

increased by 15 per cent since 2000.

increased by 1.5 per cent since 2000.

more than doubled since 2000

declined 15 per cent since 2000

is the amount that the consumer agrees to pay

is always the same as the nominal rate.

is the percentage increase in the lender's purchasing power that results from making the
loan.

decreases as the inflation rate increases.

everyone benefits because money is cheaper

everyone benefits because prices do not increase.

lenders of fixed rate mortgages generally benefit because they will make higher profits
than they had calculated.

borrowers with fixed rate loans will benefit because their purchasing power will not
decline as much.

helps everyone.

hurts everyone.

helps creditors and harms debtors

helps debtors and harms creditors.