Chapter 26

Derived demand is the demand for (LO1) a) final goods and services b) resources c) final goods as well as services and resources d) neither final goods and services nor resources

When the demand for wheat rises, the demand for farm labor (LOl) a) rises b) falls c) may rise or fall

The demand for resources is based on $(\mathrm{LO}1,2)$ a) only the demand for the final product b) only the productivity of the resource c) both the demand for the final product and the productivity of the resource d) neither the demand for the final product nor the productivity of the resource

Which statement is true? (LO1) a) Resources and final products are both measured by units of input. b) Resources and final products are both measured by units of output. c) Resources are measured by units of input, and final demand is measured by units of output. d) Resources are measured by units of output, and final products are measured by units of input.

Which statement is true? (LO2) a) Productivity is output per unit of input. b) Productivity is input per unit of output. c) Productivity is neither of the above.

Relative to the Chinese economy, the U.S. economy is (LO2) a) more capital intensive b) more labor intensive c) more labor intensive and more capital intensive d) less labor intensive and less capital intensive

The added output for which one additional input of labor is responsible is its (LO3) a) marginal revenue product b) marginal physical product c) average revenue product d) average physical product

If the MRP of the last worker hired is lower than the wage rate, the firm has $(\mathrm{LO}3)$ a) hired too many workers b) hired too few workers c) hired the right number of workers

If the wage rate is higher than the MRP of the last worker hired, ( $\mathrm{OO}3)$ a) the firm might be able to profitably hire at least one more worker b) the firm has already hired too many workers c) there is no way of knowing whether the firm has too few or too many workers

The most important influence on a firm's demand for a factor of production is ( LO4) a) the quantities of other resources b) the prices of other resources c) its productivity d) the demand for the final product