* The date when you finished the final exam: December 13 2013
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Section 1: Multiple-Choice (28 Questions). 2 Points each. 56 Points total. Write the letter of the correct answer in the ...view middle of the document...
6. The basic explanation for high real wages in the United States and other industrially advanced economies is that the:
A. Labor supply has increased more rapidly than labor demand
B. Labor demand has increased more rapidly than labor supply
C. Unemployment in these nations has remained relatively consistent
D. Inflation rate in these nations has increased faster than the rate of increase in nominal wages
A firm's labor input, total output of labor, and product price schedules are given below. Labor is the only variable input.
7. Refer to the above table and information. What is the marginal revenue product of the fifth worker?
|8. |The poultry industry in Canada is realizing economic gains. Which of the following best predicts what will happen in this |
| |competitive market? |
|A) |Businesses will leave the industry and output will fall. |
|B) |Businesses will enter the industry and output will fall. |
|C) |Businesses will leave the industry and output will rise. |
|D) |Businesses will enter the industry and output will rise. |
|9. |The newly developed smart phone platforms such as Windows Phone and Android have increased their consumer market share since |
| |2010. As a result, the previous Symbian and Palm phone platforms and devices have gone out of business. Since then phone |
| |manufacturers have switched to the new platforms. This is an example of: |
|A) |creative destruction. |
|B) |derived demand. |
|C) |capital accumulation. |
|D) |the difference between normal and economic profits. |
|10. |The dollar votes of consumers ultimately determine the composition of output and the allocation of resources in a market |
| |economy. This statement best describes the concept of: |
| |A) derived demand. B) consumer sovereignty. C) the invisible hand. D) market failure. |