1.

(05.01 MC) If the price of a factor of production decreases, ceteris paribus, the suppliers of that factor will respond by (3 points)

	changing the quality
	increasing the quantity available
	increasing the productivity
	decreasing the productivity
	decreasing the quantity available

2.

(05.01 MC) In the factor market, _______ make up demand and ________ provide the supply. (3 points)

	households; businesses
	households; the government
	households; entrepreneurs
	government; business firms
	businesses; households

3.

(05.01 MC) The number of units of output that a machine will produce increases, ceteris paribus. How will this change in productivity affect demand for the machine? (3 points)

	Demand for the machine will increase.
	Demand for the machine will decrease.
	There will be no change in demand for the machine.
	Demand will not change, but quantity demanded will decrease.
	Demand will not change, but quantity demanded will increase.

4.

(05.01 MC) Use the graph to answer the question that follows. (3 points)

30 25 20 15 Marginal Product 10 5 5 2 3 4 6 7 8 9 10 Labor 10\fTelecommunications Industry Wage Rate ($) DI Quantity (labor)