Curious about economics? Take The Laws Of Economics Quiz to test your understanding of fundamental economic principles! From supply and demand to market equilibrium, this quiz covers the basics of how economies work. Challenge yourself and see how much you know about topics like inflation, unemployment, and economic policies.
The Laws of Economics Quiz is an interactive assessment designed to See moreevaluate your knowledge of essential economic principles. In this quiz, you'll encounter questions that delve into the foundational concepts of economics, including supply and demand, market competition, elasticity, and more. By participating in this quiz, you'll have the opportunity to test your understanding of how economic systems function and the factors that influence them.
Resource substitutability.
Rising marginal resource cost.
Elasticity of resource demand.
The derived demand for labor.
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Amount by which the extra production of one more worker increases a firm's total revenue.
Decline in product price that a firm must accept to sell the extra output of one more worker.
Increase in total resource cost resulting from the hire of one extra unit of a resource.
Increase in total revenue resulting from the production of one more unit of a product.
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Intersects the firm's labor demand curve from above.
Is the firm's labor demand curve.
Lies below the firm's labor demand curve.
Lies above the firm's labor demand curve.
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The MRP exceeds the wage rate.
The wage rate is less than MP.
Average product exceeds MP.
MC exceeds MR.
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Vertical at the current level of employment.
Horizontal at the "going" wage rate.
Upward sloping.
Downward sloping.
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2 Units
5 Units
4 Units
3 Units
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Multiplying total product by product price.
Multiplying marginal product by product price.
Dividing total revenue by marginal product.
Comparing marginal product with various possible input prices.
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14
15
13
12
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Lie below its marginal revenue product curve.
Be subject to increasing marginal productivity.
Be less elastic than that of a purely competitive seller.
Be more elastic than that of a purely competitive seller
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Marginal product.
Marginal revenue.
Marginal revenue product.
Average revenue product.
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24
8
5
1
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AVC = MC.
MP = MRC.
MRC = MR.
MRP = MRC
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A decline in the price of resource X.
An increase in the price of the product resource X is producing.
A decrease in the price of substitute resource Y.
An increase in the productivity of resource X.
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Shift a firm's cost curves.
Cause the firm to alter the combination of inputs it employs.
Induce the firm to change its level of output.
Do all of these.
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Decreased by 2 percent.
Increased by 2 percent.
Increased by 3 percent.
Increased by 8 percent.
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The nominal wage may fall, but the real wage can never decline.
The real wage may fall, but the nominal wage can never decline.
Both the nominal and the real wage must always rise.
The nominal and the real wage may both fall.
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Increase in total revenue resulting from the sale of an additional unit of output.
Amount by which a firm's total resource cost increases when it employs one more unit of labor.
Increase in total revenue resulting from the hire of one more unit of labor.
Price at which additional units of labor can be employed in a monopsonized labor market.
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Expand employment if marginal revenue product exceeds marginal resource cost.
Reduce employment if marginal revenue product exceeds marginal resource cost.
Expand employment if marginal revenue product equals marginal resource cost.
Reduce employment if marginal revenue product equals marginal resource cost.
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2 units of labor.
3 units of labor.
4 units of labor.
5 units of labor.
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A perfectly elastic labor supply curve and a downsloping labor demand curve.
A perfectly elastic labor demand curve and an upsloping labor supply curve.
Labor demand and labor supply curves both of which are perfectly elastic.
A downsloping labor demand curve and an upsloping labor supply curve.
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$2
$3
$4
$16
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Monopsonist
Monopolist
Bilateral competitor
Bilateral monopolist
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Worker's wage rate.
Worker's wage rate plus the wage increases paid to all workers already employed.
Worker's wage rate adjusted for the lower price that must be charged for the extra output.
Marginal wage cost less the wage rate.
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How unions have increased wages but reduced job opportunities by shifting the supply-of-labor curve to the left.
How unions have raised wages and increased job opportunities by increasing the demand for labor.
Inclusive unionism.
Exclusive unionism.
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Equating the MRP and the MRC curves.
Shifting the labor supply curve to the left.
Shifting the labor supply curve to the right.
Shifting the MRP curve to the right.
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The inclusive unionism model
The exclusive unionism model
The bilateral monopoly model
The monopsony model
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Be logically indeterminate.
Be established at the level desired by the union.
Be established at the level desired by the employer.
Always be established at the competitive level.
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Keeps inefficient producers in business.
Reduces employment.
Undermines incentives to work.
Is deflationary.
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Both the demand-side and supply-side of labor markets.
The demand-side of labor markets only.
The supply-side of labor markets only.
Neither the demand-side or supply-side of labor markets.
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