MCQs of Economics – Production Factors

The most important factors of production are:

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

The value of the marginal product of labour is:

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

A decrease in the demand or fish

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

An increase in the demand for apples will cause all but which of the following?

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

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

An individual firm’s demand for a factor of production

An increase in the demand for a firm’s output

A competitive profit-maximizing firm should hire workers up to the point where

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

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

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

Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war?