Category: Production Factors

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

A. an amount equal to the price of output times total output
B. the amount allocated by the political process
C. an equal share of output
D. the value of its marginal product

A. supply curve of capital
B. demand curve for capital
C. production function
D. marginal cost curve

A. decrease the value of the marginal product of fishermen reduces their wage, and reduces employment in the fishing industry
B. increase the value of the marginal product of fishermen increase their wage, and increase employment in the fishing industry.
C. decrease the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
D. increase the value of the marginal product of fishermen increase their wage and decreases employment in the fishing industry

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

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

A. decrease the prosperity of the firm but increases the prosperity of the factors hired by the firm
B. decreases the prosperity of both the firms and the factors hired by the firm.
C. increases the prosperity of both the firm and the factors hired by the firm.
D. increases the prosperity of the firm but decreases the prosperity of the factors hired by the firm.

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

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

A. a decrease in the number of apple pickers employed
B. an increase in the value of the marginal product of apple pickers
C. an increase in the price of apples
D. an increase in the wage of apple pickers