The marginal revenue product (MRP) is the:

The marginal revenue product (MRP) is the:
 a. value of the additional output that an extra unit of a resource can produce.
  b. cost of hiring an additional unit of a resource.
  c. extra cost of producing an additional unit of output.
  d. increase in total output when an additional unit of an input is hired.
  e. change in total revenue when an additional unit of a good is sold.

QUESTION 2

The term self-interest, as viewed by economists, means that:
 a. consumers never pay more for a good simply because it carries a certain designer label.
  b. only economists are capable of making choices according to rational self-interest.
  c. people never act in their self-interest until they have perfect information.
  d. consumers always seek the least expensive option when making a purchase, regardless of individual preferences.
  e. people make choices that, given the information available, gives them the greatest amount of satisfaction.

QUESTION 3

The amount of additional satisfaction derived from an additional unit of a good or service is called:
 a. total utility.
 b. marginal cost.
 c. total cost.
 d. marginal utility.

QUESTION 4

When studying the market for resources, it is important to understand that:
 a. resources are wanted not for themselves, but for what they produce.
  b. demand for resources is generally inelastic in nature.
  c. derived demand does not apply to the resource market.
  d. resource markets do not conform to the laws of supply and demand as other markets do.
  e. supply is much more important than demand in determining the price of a resource.

QUESTION 5

To say that there is a scarcity of gold means that:
 a. gold prices will plummet.
  b. there is not enough gold to satisfy people's demand.
  c. there are a very few substitutes for gold.
  d. gold is relatively less expensive than other metals.
  e. the demand for gold is changing.

QUESTION 6

The law of diminishing marginal utility suggests that a demand curve:
 a. shows a direct relationship between price and quantity demanded.
  b. has a slope equal to zero.
 c. has a positive slope.
 d. has a negative slope.

QUESTION 7

The resource market is the same as the product market except that, in the resource market:
 a. the demand curve slopes upward.
  b. the households are the sellers and the firms are the buyers.
  c. there is no substitution effect.
  d. the supply curve is perfectly inelastic.
  e. there is no income effect.