Question 1

Which of the following is an example of a production function with fixed proportions?

Accepted Answer

A)  putting orange juice into cartons 
B)  mowing lawns 
C)  cutting hair 
D)  teaching economics 
A)  putting orange juice into cartons 
B)  mowing lawns 
C)  cutting hair 
D)  teaching economics

Question 2

-The above figure shows the isoquants for producing steel.Constant returns to scale are

Accepted Answer

A)  present when producing less than 10,000 tons. 
B)  present when producing between 10,000 and 20,000 tons. 
C)  present when producing more than 20,000 tons. 
D)  never present. 
A)  present when producing less than 10,000 tons. 
B)  present when producing between 10,000 and 20,000 tons. 
C)  present when producing more than 20,000 tons. 
D)  never present.

Question 3

Technical and organizational change

Accepted Answer

A)  typically reduces prices by increasing the supply of the product, ceteris paribus. 
B)  typically reduces prices by decreasing the demand for the product, ceteris paribus. 
C)  typically increases prices by increasing the demand for the product, ceteris paribus. 
D)  typically increases prices by decreasing the supply for the product, ceteris paribus. 
A)  typically reduces prices by increasing the supply of the product, ceteris paribus. 
B)  typically reduces prices by decreasing the demand for the product, ceteris paribus. 
C)  typically increases prices by increasing the demand for the product, ceteris paribus. 
D)  typically increases prices by decreasing the supply for the product, ceteris paribus.

Question 4

Isoquants

Accepted Answer

A)  hold utility constant. 
B)  hold capital constant. 
C)  hold labor constant. 
D)  hold output constant. 
A)  hold utility constant. 
B)  hold capital constant. 
C)  hold labor constant. 
D)  hold output constant.

Question 5

In the long run,all factors of production are

Accepted Answer

A)  variable. 
B)  fixed. 
C)  materials. 
D)  rented. 
A)  variable. 
B)  fixed. 
C)  materials. 
D)  rented.

Question 6

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 7

Joey cuts grass during the summer.He owns one lawn mower.For him,the short run is equal to

Accepted Answer

A)  the amount of time it takes to acquire more customers. 
B)  the amount of time it takes to hire an additional employee. 
C)  the amount of time it takes to hire an additional employee and buy another lawn mower. 
D)  the amount of time it takes to mow one lawn. 
A)  the amount of time it takes to acquire more customers. 
B)  the amount of time it takes to hire an additional employee. 
C)  the amount of time it takes to hire an additional employee and buy another lawn mower. 
D)  the amount of time it takes to mow one lawn.

Question 8

The marginal rate of technical substitution always equals

Accepted Answer

A)  the slope of the total product curve. 
B)  minus the ratio of the marginal products of inputs. 
C)  the change in output due to a change in the amount of one input. 
D)  the distance between two isoquants. 
A)  the slope of the total product curve. 
B)  minus the ratio of the marginal products of inputs. 
C)  the change in output due to a change in the amount of one input. 
D)  the distance between two isoquants.

Question 9

Suppose that additional units of capital affect the marginal productivity of labor.This is not unrealistic.Word processors increase the marginal productivity of secretaries.On the other hand,robotic equipment can completely replace a worker and,thereby,lower the marginal productivity of labor.Given this possibility,determine the conditions under which isoquants will not be convex (i.e.: concave).

Accepted Answer

The answer of Suppose that additional units of capital affect...

Question 10

Which of the following is NOT a property of isoquants?

Accepted Answer

A)  They do not cross. 
B)  The closer they are to the origin, the higher the level of output. 
C)  They have a downward slope. 
D)  They are "thin." 
A)  They do not cross. 
B)  The closer they are to the origin, the higher the level of output. 
C)  They have a downward slope. 
D)  They are "thin."

Question 11

A firm that engages in efficient production

Accepted Answer

A)  cannot produce the same output with fewer inputs. 
B)  could produce the same output with fewer inputs if it wanted to. 
C)  is not interested in profit maximization. 
D)  uses old technology to minimize costs. 
A)  cannot produce the same output with fewer inputs. 
B)  could produce the same output with fewer inputs if it wanted to. 
C)  is not interested in profit maximization. 
D)  uses old technology to minimize costs.

Question 12

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

Accepted Answer

Firm-specific characteristics

Question 13

-The above figure shows the isoquants for producing steel.Decreasing returns to scale are

Accepted Answer

A)  present when producing more than 10,000 tons. 
B)  present when producing more than 20,000 tons. 
C)  present when producing more than 30,000 tons. 
D)  never present. 
A)  present when producing more than 10,000 tons. 
B)  present when producing more than 20,000 tons. 
C)  present when producing more than 30,000 tons. 
D)  never present.

Question 14

Which of the following is an output of production?

Accepted Answer

A)  a haircut 
B)  a U.S. savings bond 
C)  a share of Acme Corporation stock 
D)  None of the above. 
A)  a haircut 
B)  a U.S. savings bond 
C)  a share of Acme Corporation stock 
D)  None of the above.

Question 15

A factor of production that can be easily changed in the relevant time period is called a

Accepted Answer

A)  fixed input. 
B)  temporary input. 
C)  variable input. 
D)  substitution input. 
A)  fixed input. 
B)  temporary input. 
C)  variable input. 
D)  substitution input.

Question 16

A production function tells the firm

Accepted Answer

A)  the maximum it can expect to produce with a given mix of inputs. 
B)  the average it can expect to produce with a given mix of inputs. 
C)  the minimum it can expect to produce with a given mix of inputs. 
D)  the average level of production for other firms in the industry. 
A)  the maximum it can expect to produce with a given mix of inputs. 
B)  the average it can expect to produce with a given mix of inputs. 
C)  the minimum it can expect to produce with a given mix of inputs. 
D)  the average level of production for other firms in the industry.

Question 17

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 18

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

Accepted Answer

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

Question 19

The actual time length of the short run is determined by when diminishing marginal returns start.

Accepted Answer

A) True 
 B)False

Question 20

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.

Which of the following is an example of a production function with fixed proportions?

-The above figure shows the isoquants for producing steel.Constant returns to scale are

Technical and organizational change

Isoquants

In the long run,all factors of production are

Which of the following statements best describes a production function?

Joey cuts grass during the summer.He owns one lawn mower.For him,the short run is equal to

The marginal rate of technical substitution always equals

Which of the following is NOT a property of isoquants?

A firm that engages in efficient production

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

-The above figure shows the isoquants for producing steel.Decreasing returns to scale are

Which of the following is an output of production?

A factor of production that can be easily changed in the relevant time period is called a

A production function tells the firm

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

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

The actual time length of the short run is determined by when diminishing marginal returns start.

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

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 an example of a production function with fixed proportions?

-The above figure shows the isoquants for producing steel.Constant returns to scale are

Technical and organizational change

Isoquants

In the long run,all factors of production are

Which of the following statements best describes a production function?

Joey cuts grass during the summer.He owns one lawn mower.For him,the short run is equal to

The marginal rate of technical substitution always equals

Which of the following is NOT a property of isoquants?

A firm that engages in efficient production

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

-The above figure shows the isoquants for producing steel.Decreasing returns to scale are

Which of the following is an output of production?

A factor of production that can be easily changed in the relevant time period is called a

A production function tells the firm

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

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

The actual time length of the short run is determined by when diminishing marginal returns start.

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

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