The income earned by a productive resource is equal to the _____________________________.

marginal product of the resource divided by the price of the good produced by the resource
price of the resource multiplied by the marginal product of the resource
price of the resource multiplied by the quantity of the resource used
marginal revenue multiplied by the marginal product of the resource

An increase in the supply of a productive resource will _______ the price of the resource, _______ the quantity used of the resource, and the income will _______.

decrease; increase; either increase or decrease
decrease; increase; decrease
increase; decrease; either increase or decrease
increase; increase; increase

As the quantity of labour increases in the short run, labour's _______ diminishes.

marginal revenue product
average cost
marginal cost
marginal revenue

In the short run, ___________________ increases the quantity of labour demanded by the firm.

a decrease in the wage rate
technological advance that decreases the marginal product of labour
an increase in the prices of other factors used by the firm
an increase in the firm's output price

The elasticity of the demand for labour depends on all of the following variables except _________________.

the equilibrium wage rate
the substitutability of capital for labour
the elasticity of demand for the good
labour intensity of the production process

If the wage rate paid in the fast-food outlets in a small town is greater than the reservation wage of all the teenagers in the town and less than the reservation wage of all the adults, then the fast-food outlets will hire __________________.

only teenagers
mostly adults and a few teenagers
some adults and some teenagers
only adults

The _______ effect means that, other things remaining the same, the higher the wage rate, the more time people will spend working and the less time people will spend pursuing leisure.

substitution
labour
price
income

At high wage rates, the labour supply curve bends backward because the _______ effect dominates the _______ effect.

income; substitution
substitution; income
substitution; price
income; price

As the interest rate _______, the amount of saving ____________ and the quantity of capital supplied _____________.

increases; increases; increases
increases; decreases; increases
decreases; increases; decreases
increases; decreases; decreases

When the supply of a resource is perfectly inelastic, the resource's income is _____________________.

entirely economic rent
mostly opportunity cost and some economic rent
a combination of economic rent and opportunity cost
entirely opportunity cost

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