[Solved] What Do Most Economists Think Is the Socially Optimum Extraction

The argument that technological change creates jobs assumes that: A)The factor substitution effect outweighs the factor output effect. B)The factor output effect outweighs the factor substitution effect. C)The real wage rate increases faster than the nominal wage rate. D)The level of human capitol in the economy is increasing.

The world's supply of oil is: A)Perfectly inelastic at all prices. B)Elastic at prices up to a certain level,and then becomes perfectly inelastic. C)Perfectly elastic. D)Inelastic at prices up to a certain level,and then becomes perfectly elastic.

What is the most likely consequence if a monopsonist hires more labour? A)A decrease in the wage rate. B)An increase in the wage rate. C)A wage rate that neither increases nor decreases. D)A rise in the marginal product of labour.

Which of the following would be most advantageous to a trade union or professional association? A)The supply of labour is restricted. B)The demand for labour is decreased. C)The supply of labour increases by more than the demand increases. D)The demand for labour increases by more than the supply increases.

All of the following statements,except one,are correct concerning the labour market for high-profile professional athletes.Which is the exception? A)The supply is inelastic. B)The wage rate is demand-driven. C)There is an element of economic rent in their pay. D)There is no transfer earnings involved in their pay.

If the MPK/PK is greater than the MPL/PL,which of the following is correct? A)The firm should substitute labour for capital. B)The firm should substitute capital for labour. C)The firm should raise the wage rate of its labour. D)The firm should decrease its output.

Which of the following would cause,graphically,a shift to the right in the demand curve for a factor? A)A decrease in the price of that factor. B)An increase in the price of a substitute factor. C)A decrease in the price of the product produced by the factor. D)An increase in the marginal product of a substitute factor.

If most people's desire for leisure increases,which one of the following statements is correct? A)The wage rate would fall,and the quantity of products produced would rise. B)Both the wage rate and the quantity of products produced would fall. C)The wage rate would fall,and the demand for labour would increase. D)The wage rate would rise,and the quantity of products produced would fall. E)Both the wage rate and the quantity of products produced would rise.

All of the following statements,except one,concerning the concept of economic rent are correct.Which is the exception? A)The more inelastic the supply of a factor,the more economic rent that factor earns. B)A factor that has a perfectly inelastic supply will earn no transfer earnings. C)It is possible for a factor to receive both economic rent and transfer earnings. D)If we assume that land has only one use,such as agriculture,then all of its return is economic rent. E)The higher the transfer earnings of a factor,the higher its economic rent will be.

When is the marginal revenue product of a factor at a maximum? A)When its marginal product is at a maximum. B)When the firm's total product is at a maximum. C)When its marginal product is at a minimum. D)When both its marginal product and the firm's total product are at a maximum. E)When average product is at its maximum.