Question 1

Which of the following is NOT an output of the production function?

Accepted Answer

A) a haircut 
B) a share of Acme Corporation stock 
C) a case of soda pop 
D) an extra-large pepperoni pizza 
A) a haircut 
B) a share of Acme Corporation stock 
C) a case of soda pop 
D) an extra-large pepperoni pizza

Question 2

Given the production function q = 1.37LK, what is the marginal product of labor?

Accepted Answer

A) 1.37 
B) 0 
C) 1.37K 
D) Cannot be determined with the information given. 
A) 1.37 
B) 0 
C) 1.37K 
D) Cannot be determined with the information given.

Question 3

A factor of production that cannot be easily changed in the relevant time period is called a

Accepted Answer

A) short-run factor. 
B) fixed input. 
C) variable input. 
D) production anchor. 
A) short-run factor. 
B) fixed input. 
C) variable input. 
D) production anchor.

Question 4

L-shaped isoquants imply that production requires that the inputs

Accepted Answer

A) are perfect substitutes. 
B) are imperfect substitutes. 
C) cannot be used together. 
D) must be used together in a certain proportion. 
A) are perfect substitutes. 
B) are imperfect substitutes. 
C) cannot be used together. 
D) must be used together in a certain proportion.

Question 5

-According to the table above, clothing production exhibits

Accepted Answer

A) decreasing returns to scale. 
B) constant returns to scale. 
C) increasing returns to scale. 
D) varying returns to scale. 
A) decreasing returns to scale. 
B) constant returns to scale. 
C) increasing returns to scale. 
D) varying returns to scale.

Question 6

Which of the following statements is TRUE in the short run?

Accepted Answer

A) Generally, labor is a fixed input. 
B) Generally, capital is a fixed input. 
C) Raw materials are generally considered to be fixed inputs. 
D) None of the above. 
A) Generally, labor is a fixed input. 
B) Generally, capital is a fixed input. 
C) Raw materials are generally considered to be fixed inputs. 
D) None of the above.

Question 7

-The above table shows the short-run production function for Albert's Pretzels. The marginal product of labor equals the average product of labor

Accepted Answer

A) for all levels of labor. 
B) at none of the levels of labor. 
C) only for the first worker. 
D) only for the fifth worker. 
A) for all levels of labor. 
B) at none of the levels of labor. 
C) only for the first worker. 
D) only for the fifth worker.

Question 8

Which of the following statements is TRUE?

Accepted Answer

A) A Cobb-Douglas production function can have different returns to scale at different output levels. 
B) It is impossible to have increasing returns to scale for one output level, and decreasing returns to scale for a different output level. 
C) It is possible to have increasing returns to scale for one output level, and decreasing returns to scale for a different output level. 
D) None of the above. 
A) A Cobb-Douglas production function can have different returns to scale at different output levels. 
B) It is impossible to have increasing returns to scale for one output level, and decreasing returns to scale for a different output level. 
C) It is possible to have increasing returns to scale for one output level, and decreasing returns to scale for a different output level. 
D) None of the above.

Question 9

Explain how firms that each produce as efficiently as they can may not be equally productive.

Accepted Answer

Firm-specific characteristics

Question 10

Returns to scale is a concept that operates

Accepted Answer

A) only in the short run. 
B) only in the long run. 
C) in both the long run and the short run. 
D) in either the long run or the short run depending on the industry of the firm. 
A) only in the short run. 
B) only in the long run. 
C) in both the long run and the short run. 
D) in either the long run or the short run depending on the industry of the firm.

Question 11

If a firm doubles inputs and produces three times the output, then there are

Accepted Answer

A) constant returns to scale. 
B) increasing marginal returns. 
C) decreasing returns to scale. 
D) increasing returns to scale. 
A) constant returns to scale. 
B) increasing marginal returns. 
C) decreasing returns to scale. 
D) increasing returns to scale.

Question 12

If a firm cuts inputs in half, and output falls by more than half, then there are

Accepted Answer

A) increasing returns to scale. 
B) decreasing returns to scale. 
C) constant returns to scale. 
D) decreasing marginal returns. 
A) increasing returns to scale. 
B) decreasing returns to scale. 
C) constant returns to scale. 
D) decreasing marginal returns.

Question 13

One way to explain the convexity of isoquants is to say that

Accepted Answer

A) as labor increases and capital decreases, MPL rises while MPK falls. 
B) as labor increases and capital decreases, MPL falls while MPK rises. 
C) as labor increases and capital decreases, MPL and MPK both fall. 
D) as labor increases and capital decreases, MPL and MPK both rise. 
A) as labor increases and capital decreases, MPL rises while MPK falls. 
B) as labor increases and capital decreases, MPL falls while MPK rises. 
C) as labor increases and capital decreases, MPL and MPK both fall. 
D) as labor increases and capital decreases, MPL and MPK both rise.

Question 14

At any given point on the curve, the slope of the total product curve always equals

Accepted Answer

A) the ratio of the marginal product and the average product. 
B) the change in input divided by the change in output. 
C) the average product of the input. 
D) the marginal product of the input. 
A) the ratio of the marginal product and the average product. 
B) the change in input divided by the change in output. 
C) the average product of the input. 
D) the marginal product of the input.

Question 15

Which of the following is NOT a factor of production?

Accepted Answer

A) labor 
B) capital 
C) money 
D) materials 
A) labor 
B) capital 
C) money 
D) materials

Question 16

If capital increases by two units, and MRTS is 1, then what is the MPL?

Accepted Answer

A) 2 
B) 1/2 
C) 1 
D) Not enough information given. 
A) 2 
B) 1/2 
C) 1 
D) Not enough information given.

Question 17

Thomas Malthus' prediction of mass starvation resulting from diminishing marginal returns has NOT been fulfilled because

Accepted Answer

A) the law of diminishing marginal returns did not hold in this case. 
B) Malthus ignored other factors like technological change. 
C) relative to Malthus' day, a larger percentage of today's labor force works in the agricultural sector. 
D) All of the above. 
A) the law of diminishing marginal returns did not hold in this case. 
B) Malthus ignored other factors like technological change. 
C) relative to Malthus' day, a larger percentage of today's labor force works in the agricultural sector. 
D) All of the above.

Question 18

Which of the following statements best describes a production function?

Accepted Answer

A) The maximum profit generated from given levels of inputs. 
B) The maximum level of output generated from given levels of inputs. 
C) All levels of output that can be generated from given levels of inputs. 
D) All levels of inputs that could produce a given level of output. 
A) The maximum profit generated from given levels of inputs. 
B) The maximum level of output generated from given levels of inputs. 
C) All levels of output that can be generated from given levels of inputs. 
D) All levels of inputs that could produce a given level of output.

Question 19

Which of the following statements is TRUE?

Accepted Answer

A) Labor is always a variable input, whereas Capital is always a fixed input. 
B) Labor is always a fixed input, whereas Capital is always a variable input. 
C) Labor can be a fixed input., and Capital can be a variable input. 
D) Labor can be a fixed input, and Capital is always a fixed input. 
A) Labor is always a variable input, whereas Capital is always a fixed input. 
B) Labor is always a fixed input, whereas Capital is always a variable input. 
C) Labor can be a fixed input., and Capital can be a variable input. 
D) Labor can be a fixed input, and Capital is always a fixed input.

Question 20

Given the production function q = 4LK, what is the marginal product of labor when capital is fixed at 25?

Accepted Answer

A) 4K 
B) 100 
C) 100K 
D) 100L 
A) 4K 
B) 100 
C) 100K 
D) 100L

Which of the following is NOT an output of the production function?

Given the production function q = 1.37LK, what is the marginal product of labor?

A factor of production that cannot be easily changed in the relevant time period is called a

L-shaped isoquants imply that production requires that the inputs

-According to the table above, clothing production exhibits

Which of the following statements is TRUE in the short run?

-The above table shows the short-run production function for Albert's Pretzels. The marginal product of labor equals the average product of labor

Which of the following statements is TRUE?

Explain how firms that each produce as efficiently as they can may not be equally productive.

Returns to scale is a concept that operates

If a firm doubles inputs and produces three times the output, then there are

If a firm cuts inputs in half, and output falls by more than half, then there are

One way to explain the convexity of isoquants is to say that

At any given point on the curve, the slope of the total product curve always equals

Which of the following is NOT a factor of production?

If capital increases by two units, and MRTS is 1, then what is the MP_L?

Thomas Malthus' prediction of mass starvation resulting from diminishing marginal returns has NOT been fulfilled because

Which of the following statements best describes a production function?

Which of the following statements is TRUE?

Given the production function q = 4LK, what is the marginal product of labor when capital is fixed at 25?

Introduction

Supply and Demand

Empirical Methods for Demand Analysis

Consumer Choice

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters

Exam 5: Production

Which of the following is NOT an output of the production function?

Given the production function q = 1.37LK, what is the marginal product of labor?

A factor of production that cannot be easily changed in the relevant time period is called a

L-shaped isoquants imply that production requires that the inputs

-According to the table above, clothing production exhibits

Which of the following statements is TRUE in the short run?

-The above table shows the short-run production function for Albert's Pretzels. The marginal product of labor equals the average product of labor

Which of the following statements is TRUE?

Explain how firms that each produce as efficiently as they can may not be equally productive.

Returns to scale is a concept that operates

If a firm doubles inputs and produces three times the output, then there are

If a firm cuts inputs in half, and output falls by more than half, then there are

One way to explain the convexity of isoquants is to say that

At any given point on the curve, the slope of the total product curve always equals

Which of the following is NOT a factor of production?

If capital increases by two units, and MRTS is 1, then what is the MPL?

Thomas Malthus' prediction of mass starvation resulting from diminishing marginal returns has NOT been fulfilled because

Which of the following statements best describes a production function?

Which of the following statements is TRUE?

Given the production function q = 4LK, what is the marginal product of labor when capital is fixed at 25?

Introduction

Supply and Demand

Empirical Methods for Demand Analysis

Consumer Choice

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters

If capital increases by two units, and MRTS is 1, then what is the MP_L?