Home / Questions / Factor X is used in the production of good Y. Which of the following will increase the dem

Factor X is used in the production of good Y. Which of the following will increase the dem

Factor X is used in the production of good Y. Which of the following will increase the demand for factor X?

a.a decrease in the demand for Y

b.a rise in the MPP of factor X

c.a fall in the price of good Y

d.a fall in the cost of employing factor X

e.a and b

 

 

 

129.Which of the following is true?

a.The market demand for labor is the horizontal "addition" of the firms' demand curves for labor.

b.The elasticity of demand for labor is the percentage change in quantity demanded of labor divided by the percentage change in wage rate.

c.The factor demand curve will shift to the right if the price rises for the good the factor goes to produce.

d.b and c

e.a, b, and c

 

 

 

130.The elasticity of demand for labor is 2.16. It follows that if the

a.wage rate changes by 10 percent, the demand for labor changes by 2.16 percent.

b.demand for labor changes by 2.16 percent, the wage rate changes by 1.0 percent.

c.wage rate changes by 10 percent, the quantity demanded of labor changes by 21.6 percent.

d.wage rate changes by 2.16 percent, the quantity demanded of labor changes by 2.16 percent.

e.none of the above

 

 

 

131.What is the relationship between the elasticity of demand for a product and the elasticity of demand for labor (that is used in producing the product)?

a.The higher the price of the product, the higher the elasticity of demand for labor.

b.The higher the price of the product, the lower the elasticity of demand for labor.

c.The higher the elasticity of demand for the product, the lower the elasticity of demand for the product.

d.The lower the elasticity of demand for the product, the lower the elasticity of demand for the product.

e.There is not enough information to answer the question.

 

 

 

132.Which of the following statements is false?

a.The higher the labor cost-total cost ratio, the higher the elasticity of demand for labor.

b.The more substitutes for labor, the higher the elasticity of demand for labor.

c.The higher the elasticity of demand for the product, the higher the elasticity of demand for the labor that produces the product.

d.A change in the MFC of a factor leads to a change in the MRP of a factor.

 

 

 

133.Given a 10 percent increase in wages, firm A cuts back on labor more than firm B. It follows that, ceteris paribus,

a.firm A has a higher labor cost-total cost ratio than firm B.

b.firm B has a higher labor cost-total cost ratio than firm A.

c.the elasticity of demand for labor is higher for firm B than firm A.

d.firm B has higher fixed costs than firm A.

e.firm A has higher per-unit costs than firm B.

 

 

 

134.Given an 8 percent increase in wages, firm A cuts back on labor more than firm B. It follows that, ceteris paribus,

a.there are fewer substitutes for labor in firm B than A.

b.there are fewer substitutes for labor in firm A than B.

c.sunk costs are greater for firm A than B.

d.the demand for the product that firm A produces is less elastic than the product that firm B produces.

e.a and d

 

 

 

135.Given a 3 percent decrease in wages, firm A hires more labor than firm B. It follows that, ceteris paribus,

a.the elasticity of demand for the product that firm A produces is lower than the elasticity of demand for the product that firm B produces.

b.firm A has a lower labor cost-total cost ratio than firm B.

c.firm A has more substitutes for labor than firm B.

d.firm A has higher per-unit costs than firm B.

e.none of the above

 

 

 

136.As the wage rate rises,

a.the supply of labor rises.

b.the quantity demanded of labor rises.

c.the quantity supplied of labor rises.

d.the demand for labor falls.

e.a and d

 

 

 

137.When the owners of a professional sports team pay their athletes very high salaries, it must be true that

a.the nonpecuniary aspects of the job are very low.

b.the owners expect the MRP of that athlete to be greater than the amount the player is paid.

c.the owners expect the MFC of that athlete to be greater than the amount the player is paid.

d.b and c

e.all of the above

 

Dec 09 2019 Read more Less More

Answer (UnSolved)

question Subscribe To Get Solution

Recent Questions

Chat Now

Welcome to Live Chat

Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.

Please fill in the form