This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Factor Markets > Factor Markets – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Factor Markets Quiz 4 (11 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Michael Scott manages Dunder Mifflin. Two inputs are used to produce paper. To minimize costs of production, Michael Scott should continue to hire inputs up to the level at which the: A) (Marginal product/price) of each input is equal. B) (Marginal product-price) of each input is equal. C) Price of each input is equal. D) Marginal product of each input is equal. E) (Marginal product * price) of each input is equal. Show Answer Correct Answer: A) (Marginal product/price) of each input is equal. 2. Which of the following is the correct formula for marginal revenue product (MRP)? A) MRP= Change in inputs/ Change in total product. B) MRP= Change in total profit/change in revenue. C) MRP= Change in total costs/change in input. D) MRP= Change in total revenue/change in inputs . Show Answer Correct Answer: D) MRP= Change in total revenue/change in inputs . 3. All of the following are shifters for the supply of labor EXCEPT: A) Education and Training. B) Cultural expectations. C) Working conditions. D) A change in the price of a substitute good . Show Answer Correct Answer: D) A change in the price of a substitute good . 4. If Dunder Mifflin has monopsony power, which of the following is always true? A) The input demand curve lies above the marginal factor cost curve. B) The marginal factor cost curve lies above the input demand curve. C) The marginal revenue product curve lies above the input demand curve. D) The marginal revenue product curve is upward-sloping. E) The marginal factor cost curve lies above the input supply curve. Show Answer Correct Answer: E) The marginal factor cost curve lies above the input supply curve. 5. Dunder Mifflin, a paper-producing firm, hires labor and capital in perfectly competitive factor markets. The firm is minimizing its costs at the current production level. The marginal product of capital is 240 units and the marginal product of labor is 400 units. If the rental price of capital is $ 48, what is the wage Dunder Mifflin is paying its workers? A) $ 160. B) $ 80. C) $ 48. D) $ 33.32. E) $ 20. Show Answer Correct Answer: B) $ 80. 6. The structure of a factor market where the individual business is the wage maker because only one business is hiring workers is called a A) Monopsons. B) Monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: A) Monopsons. 7. Which of the following is the correct formula for marginal resource cost (MRC)? A) MRC= Change in total cost/ Change in inputs. B) MRC=Change in total product/Change in total costs. C) MRC = Change in inputs/Change in total costs. D) MRC= Total costs/Quantity of inputs . Show Answer Correct Answer: A) MRC= Change in total cost/ Change in inputs. 8. An increase in the demand for paper will cause the demand for paper sales reps and the wage rate of skilled paper sales reps to change in which of the following ways? A) Option A. B) Option B. C) Option C. D) Option D. E) Option E. Show Answer Correct Answer: A) Option A. 9. Unions can lead to different wages in a business because A) Unions enjoy higher production. B) Unions will agree to create similar wages with non-union members. C) Unions lower the company costs in general. D) Unions can threaten to strike or use collective bargaining to negotiate higher wages for union members. . Show Answer Correct Answer: D) Unions can threaten to strike or use collective bargaining to negotiate higher wages for union members. . 10. The profit-maximizing combination of inputs is found using when A) MRPL/MFCL>MRPK/MFCK. B) MRPL/MFCL C) MPL/MFCL=MPK/MFCK. D) MRPK/MFCL=MRPL/MFCK=1. E) MRPL/MFCL=MRPK/MFCK=1. Show Answer Correct Answer: E) MRPL/MFCL=MRPK/MFCK=1. 11. Which of the following would cause a decrease in the gap in earnings between skilled and unskilled workers over time? A) A decrease in the demand for unskilled workers relative to skilled workers. B) A decrease in the supply of skilled workers relative to unskilled workers. C) An increase in the demand for unskilled workers relative to skilled workers. D) An increase in both the demand for and supply of skilled workers. E) A decrease in both the demand for and supply of unskilled workers. Show Answer Correct Answer: C) An increase in the demand for unskilled workers relative to skilled workers. ← PreviousRelated QuizzesMicroeconomics QuizzesEconomics QuizzesFactor Markets Quiz 1Factor Markets Quiz 2Factor Markets Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books