An increase in the price of automobiles shifts the demand for autoworkers to the ?

A. Left and decreases the wage
B. Right and decreases the wage
C. Right and increases the wage
D. Left and increases the wage

If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?

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

For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm’s ?

A. Supply curve of capital
B. Demand curve for capital
C. Production function
D. Marginal cost curve

What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ?

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 decrease in the supply of farm tractors will cause all but which of the following ?

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

If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?

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

An increase in the demand for a firm’s output ?

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.

Which of the following is not true with regard to workers who have a high value of marginal product? These workers ?

A. Have skills that are in relatively scarce supply
B. Produce output for which there is great demand
C. Usually have little capital with which to work
D. Are usually highly paid

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. Interest
B. Dividends
C. Increases in stocks of goods
D. Retained earnings

In contestable markets large oligopolistic firms end up behaving like ?

A. Monopolistically competitive firms
B. A cartel
C. Perfectly competitive firms
D. A monopoly.