ECONOMICS301

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ECONOMICS301 12

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TEST BANK FOR CHAPTER 13 : PRICING IN INPUTS MARKETS

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MULTIPLE CHOICE 1. A firm’s demand for labor is known as a “derived demand” because a. the firm gains utility from hiring more labor. b. the amount of labor hired depends upon how much output the firm can sell. c. the wage rate paid to workers is derived from the market for labor. d. it is derived from the demand for capital. ANS: b 2. If the price of an input falls, a firm would increase the use of that input for two reasons: a. The input is now more productive, and the firm can s...

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TEST BANK FOR CHAPTER 9 : PERFECT COMPETITION IN A SINGLE MARKET

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MULTIPLE CHOICE 1. In the very short run a. new firms may enter the industry. b. existing firms may change the quantity they are supplying. c. price and quantity supplied is absolutely fixed. d. quantity supplied is absolutely fixed. ANS: d 2. In the short run a. new firms may enter an industry. b. existing firms may change the quantity they are supplying. c. price and quantity supplied are absolutely fixed. d. quantity supplied is absolutely fixed. ANS: b 3. The short-run market su...

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ECONOMICS301 • ECONOMICS301