The demand for capital by a firm is based on the demand for the product that the capital produces. This relationship is referred to as:
A. Product demand
B. Derived demand
C. Resource utilization
D. Cost minimization
B. Derived demand
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The change in a firm's total revenue that results from hiring an additional worker is measured by the
A. average revenue product. B. marginal product. C. marginal revenue. D. marginal revenue product.
If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's consumers end up
A) paying a higher price for the good than they otherwise would. B) paying a lower price for the good than they otherwise would. C) consuming more of the good than they otherwise would. D) having a higher standard of living than they otherwise would.
Mathematically, the value of the spending multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
a. MPC ? 1. b. (MPC ?1) / MPC. c. 1 / MPC. d. 1 / (1 ? MPC).
A monopolist has less to gain from cost-saving measures in the production process when
a. the monopoly is unregulated. b. regulators use average cost pricing to set the monopolist's price. c. the demand for the product of the monopolist is inelastic. d. changes in the regulated price occur only after considerable delay.