Tackle the Test: Multiple-Choice Questions

1. Question

   Which of the following is an example of physical capital?

   A.

   manual labor

   B.

   welding equipment

   C.

   farm land

   D.

   lumber

   E.

   education

   Which of the following is an example of

2. Question

   Which of the following can shift the factor demand curve to the right?

   
   

   
   

   1. an increase in the price of the good being produced

      
      
   
   

   2. an increase in the factor’s marginal productivity

      
      
   
   

   3. a technological advance
      

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   Which of the following can shift the factor demand curve to the right?

3. Question

   Factor market demand is called a derived demand because it

   A.

   derives its name from the Latin factorus.

   B.

   is derived from the market wage received by workers.

   C.

   is derived from the productivity of workers.

   D.

   is derived from the product market.

   E.

   derives its shape from the price of the factor.

   Factor market demand is called a

4. Question

   Which factor of production receives the largest portion of income in the United States?

   A.

   land

   B.

   labor

   C.

   physical capital

   D.

   entrepreneurship

   E.

   interest

   Which factor of production receives the largest portion of income in the United States?

5. Question

   The individual firm’s demand curve for labor is

   A.

   the MRPL curve.

   B.

   upward-sloping.

   C.

   horizontal at the level of the product price.

   D.

   vertical.

   E.

   equal to the MPL curve.

   The individual firm’s demand curve for labor is