The demand for a productive resource, not for its own sake, but for use in the production of goods and services is called a _______________.

production demand
goods and services demand
resource demand
derived demand

Marginal revenue product is the ________________ when one additional unit of a labour is employed, all other things remaining the same.

marginal revenue
total revenue
change in total revenue
change in marginal revenue

The firm's demand for labour is derived from __________.

labour's cost
labor's marginal revenue product
the firm's marginal revenue
the firm's marginal cost

To maximize profit, a firm hires the quantity of labour that makes the ______________________.

marginal revenue product of labour equal to the wage rate
marginal product of labour equal to its marginal revenue
total revenue from labour equal to the total cost of labour
marginal product of labour equal to the total labour cost

People allocate their time between ___________________.

labour and work
supplying labour and doing all sorts of other things
sleep and work
sleep, work, and supplying labour

A household's reservation wage is the ___________________________.

lowest wage rate at which the household will supply labour
wage rate at which the household's income is largest
wage rate at which the household's income equals the costs of working
wage at which the household's labour supply curve bends backward

The net present value of capital is equal to the present value of its _____________________________.

future flow of marginal revenue minus its cost
future flow of marginal revenue product minus its cost
marginal revenue product minus its cost
future flow of marginal revenue product

The supply of capital is the relationship between the quantity of capital supplied and the _______________, other things remaining the same.

interest rate
price in dollars
rental rate
price level

_______ natural resources are resources that can be used repeatedly, and _______ natural resources are resources that can be used only once.

Renewable; hydrocarbon
Nonexhaustible; exhaustible
Exhaustible; nonexhaustible
Non-fossil; fossil

The income received by the owner of a productive resource that exceeds the amount that the owner requires to induce it to offer the resource for use is called ______________.

economic rent
opportunity cost
the rental rate
the wage rate

Please enter your name and press the SEND button