QuizMaster

A. the wage, the rental price of capital and the rental price of land are all equal
B. the marginal product of labor equals zero and the production function is maximized
C. the value of the marginal product of labor equals the wage
D. the marginal product of labor equals the wage

A. 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 producing the value of the marginal product as more of the factor is use
B. Slopes downward due to the factor’s diminishing marginal product
C. slopes upward due to the factor’s increasing marginal product
D. is perfectly elastic (horizontal) if the factor market is perfectly competitive

A. an increase in the rental rate for tractor
B. a decrease in the rental rate of farmland
C. a decrease in the value of the marginal product of tractors
D. an increase in the wage of farm workers

A. increase the demand for fishing boats and decrease rental rates on fishing boats
B. decreases the demand for fishing boats and increase rental rates on fishing boats.
C. decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
D. increase the demand for fishing boats and increase rental rates on fishing boats

A. supply curve of capital
B. demand curve for capital
C. production function
D. marginal cost curve

A. cause a reduction is output
B. have no effect on output
C. increase the marginal product of the factor
D. generate ever smaller amounts of output

A. interest
B. dividends
C. increases in stocks of goods
D. retained earnings

A. have skills that are in relatively scarce supply
B. produce output for which there is great demand
C. usually have little capital with which to work
D. are usually highly paid

A. decrease the prosperity of the firm but increases the prosperity of the factors hired by the firm
B. decreases the prosperity of both the firms and the factors hired by the firm.
C. increases the prosperity of both the firm and the factors hired by the firm.
D. increases the prosperity of the firm but decreases the prosperity of the factors hired by the firm.

A. an amount equal to the price of output times total output
B. the amount allocated by the political process
C. an equal of output
D. the value of its marginal product