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1. Caterpillar Industries produces bulldozers, large earth-movers, and dump trucks for the American and world economies. The New York Times of September 25, 2015, reported that falling world demand for their products resulted in "Caterpillar cutting as many as 10,000 workers." The notion that the demand for an input depends on the demand for the output produced by the input is termed:
A. Proportional demand.
B. Complementary demand.
C. Direct demand.
D. Inverse demand.
E. Derived demand.
2. Which of the following responses most accurately completes the definition of a worker's "Marginal Revenue Product (MRP)"? The MRP represents the change in the:
A. Firm's Total Costs (TC) as the result of hiring an additonal worker.
B. Firm's Total Revenues (TR) as the result of hiring an additional worker.
C. Firm's profits as the result of hiring an additional worker.
D. Firm's output (q) as the result of hiring an additional worker.
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