Multiple choice questions have a value of 1 point and the short answer question is worth 2 points

1.    The demand for goods and services is called ______ demand, while the demand for resources is called ____

demand.
A)    derived, derived    B) final, final    C) final, derived    D) derived, final

2.    The additional revenue obtained by selling the output produced by one more unit of a resource is its
A)    marginal physical product.     C)    final demand.
B)    marginal revenue product.     D)    average revenue product.

3.    You can find the MRP by multiplying marginal physical product by price for
A)    both the perfect competitor and the imperfect competitor.
B)    neither the perfect competitor nor the imperfect competitor.
C)    only the perfect competitor.
D)    only the imperfect competitor.

4.    If the MRP of the last worker hired is lower than the wage rate, the firm has
A)    hired too many workers.     C)    hired the right number of workers.
B)    hired too few workers.

5.    The minimum wage is a price _______, that tends to ______ the employment of unskilled workers.
A)    Ceiling, decrease    B) ceiling, increase    C) floor, decrease    D) floor, increase

6.        The principle of comparative advantage
A)    applies only when the gold standard is in effect.
B)    Is the basic reason that the United States has been running trade deficits.
C)    states that it is advantageous to export more than you import.
D)    states that total output is greatest when each product is made by the country that has the lowest opportunity

cost.

7.    The supply of land is
A)    perfectly elastic.     C)    relatively inelastic.
B)    relatively elastic.     D)    perfectly inelastic.

8.    If Germany can make compact cars more efficiently than Russia, it enjoys
A)    a comparative advantage.    B)  an absolute advantage.    C)  no advantage.

9. Why do most economists feel that International Trade is good for society?