The formula for optimal employment of two resources, x and y, is
a. MPx - MPy
b. MRPx = MRPy
c. MPx Px = MPy Py
d. MRCx = MRCy
e. MRPx/MRCx = MRPy/MRCy = 1
QUESTION 2In a market economy, household income is determined primarily by
a. the age of the head of household
b. the gender of the head of household
c. luck
d. the productivity of labor resources
e. government transfer payments
QUESTION 3A change in demand for a resource can be caused by
a. proportion of economic rent in the total earnings of the resource
b. opportunity cost of the resource
c. price of the resource
d. a change in the number of firms producing the final product
e. ease with which resources can be put to alternative uses
QUESTION 4In the United States, most income comes from
a. capital gains
b. stocks and bonds
c. providing labor resources
d. illegal transactions
e. government transfer payments
QUESTION 5If coal and oil are substitute inputs in the production of electricity, an increase in the price of oil
a. will increase the demand for coal
b. will reduce the demand for coal
c. will increase the supply of coal
d. will reduce the supply of coal
e. will not affect the demand for coal
QUESTION 6In a market economy, income is primarily determined by
a. the productivity of household resources
b. the level of transfer payments
c. government monetary and fiscal policy
d. the geographic distribution of resources
e. the amount of financial assets owned by households
QUESTION 7An increase in the price of electronic cash registers will
a. increase the demand for cashiers if electronic cash registers are a complementary resource
b. reduce the demand for cashiers if electronic cash registers are a complementary resource
c. reduce the quantity of electronic cash registers supplied
d. reduce the demand for manual cash registers
e. reduce the average cost of retail stores
QUESTION 8If income were distributed solely according to marginal productivity,
a. every family would be above the poverty level
b. it would be distributed evenly
c. it would be distributed normally
d. workers in capital-intensive industries would earn less than workers in labor-intensive industries
e. some individuals would not receive any income
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