The value of marginal product equals marginal product :

The value of marginal product equals marginal product
 
  A) multiplied by the quantity of labor.
  B) divided by the quantity of labor.
  C) multiplied by the good's market price.
  D) divided by the good's market price.

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Ques. 2

A movie shown on a pay-per-view cable station is an example of
 
  A) an excludable and rival good.
  B) a nonexcludable and rival good.
  C) an excludable and nonrival good.
  D) a nonexcludable and nonrival good.

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Ques. 3

The greater the substitutability between Northwest timber and Southeast timber, the ________ is the cross elasticity of demand between timber from the two regions and the ________ is the elasticity of demand for Northwest timber.
 
  A) smaller; smaller
  B) smaller; larger
  C) larger; smaller
  D) larger; larger

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Ques. 4

Using the data in the above table, if exports = 1,150 billion and the private sector runs a surplus of 300 billion, the government sector will run
 
  A) a surplus of 150 billion.
  B) a surplus of 450 billion.
  C) a deficit of 150 billion.
  D) a deficit of 450 billion.

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Ques. 5

In the short run, when the Fed increases the quantity of money
 
  A) bond prices rise and the interest rate falls.
  B) bond prices fall and the interest rate rises.
  C) the demand for money increases.
  D) the supply of money curve shifts leftward.

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Ques. 6

Consider the market for purple magic markers. The demand for purple magic markers is perfectly elastic and the supply curve is upward sloping.
 
  If sellers of purple magic markers are taxed 1 per marker, how will the tax be divided between the buyer and seller? A) The sellers will pay the entire tax.
  B) The buyers will pay the entire tax.
  C) The tax will be evenly divided between the sellers and buyers.
  D) More information is needed to determine how the tax is split.

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Ques. 7

George spends all his income on sandwiches and juice. George's utility is maximized when he is consuming sandwiches and juice so that the
 
  A) marginal utility from sandwiches equals the marginal utility from juice.
  B) total utility from sandwiches equals the total utility from juice.
  C) marginal utility per dollar spent on sandwiches equals the marginal utility per dollar spent on juice.
  D) marginal utility from sandwiches is at a maximum.

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Ques. 8

The value of marginal product of labor
 
  A) is the change in total product that results from selling one more unit of a good.
  B) is equal to the price of the good produced multiplied by the marginal product of labor.
  C) is equal to marginal revenue multiplied by the quantity.
  D) increases as the amount of labor employed increases.

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Ques. 9

If the demand for its product is inelastic, a monopoly's
 
  A) total revenue increases when the firm lowers its price.
  B) total revenue is unchanged when the firm lowers its price.
  C) marginal revenue is negative.
  D) marginal revenue is equal to zero.

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Ques. 10

If a firm's marginal product of labor is less than its average product of labor, then an increase in the quantity of labor it employs definitely will
 
  A) decrease its total product.
  B) decrease its average product of labor.
  C) increase its marginal product of labor.
  D) not change its average product of labor.