An Answer to the Question "For Whom" Determines

question 12

Multiple Choice

An answer to the question "For whom" determines:

• A) tastes and preferences.
• B) how resources are combined in production.
• C) the kinds and quantities of goods produced.
• D) who gets the goods and services produced.

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Definitions:

Resource Prices

The cost of inputs used in the production of goods and services, such as labor, capital, land, and raw materials.

Marginal Revenue Product

The extra income obtained through the use of an additional unit of a resource, for example, capital or labor.

Wage Rates

The amount of money paid to an employee by an employer for a unit of time worked or for a certain amount of work completed.

Labor Demand

Denotes the quantity of labor that employers are willing to hire at a given wage rate in a given time period.