A. Wages rise, and rental rates fall
B. Wages rise, and rental rates rise
C. Wages fall, and rental rates rise
D. Wages fall, and rental rates fall
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An increase in the price of automobiles shifts the demand for autoworkers to the ?
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A competitive profit-maximizing firm should hire workers up to the point where ?
A. left and decreases the wage
B. right and decreases the wage
C. right and increases the wage
D. left and increases the wage
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An individual firm’s demand for a factor of production ?
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
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A decrease in the supply of farm tractors will cause all but which of the following ?
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
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What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ?
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
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For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm’s ?
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
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If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?
A. supply curve of capital
B. demand curve for capital
C. production function
D. marginal cost curve
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When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?
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
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Which of the following is not true with regard to workers who have a high value of marginal product? These workers ?
A. interest
B. dividends
C. increases in stocks of goods
D. retained earnings