Question 1

If government policies to increase productivity are successful,then the:

Accepted Answer

A)  Production function will shift upward. 
B)  Marginal cost curve will shift upward. 
C)  Average total cost curve will shift upward. 
D)  Variable cost curve will shift upward. 
A)  Production function will shift upward. 
B)  Marginal cost curve will shift upward. 
C)  Average total cost curve will shift upward. 
D)  Variable cost curve will shift upward.

Question 2

Table 5.1-Labor and output data  
-What is the marginal physical product of the second unit of labor in Table 5.1?

Accepted Answer

A)  12 
B)  14 
C)  16 
D)  30 
A)  12 
B)  14 
C)  16 
D)  30

Question 3

Table 5.3-Yearbook costs
(This table shows the total cost of producing yearbooks using a school's print shop. )  
-The marginal cost is at a minimum in Table 5.3 when:

Accepted Answer

A)  The first 100 units are produced. 
B)  Output increases from 300 units to 400 units. 
C)  Output increases from 100 units to 200 units. 
D)  Output increases from 200 units to 300 units. 
A)  The first 100 units are produced. 
B)  Output increases from 300 units to 400 units. 
C)  Output increases from 100 units to 200 units. 
D)  Output increases from 200 units to 300 units.

Question 4

According to the law of diminishing returns,the marginal physical product of a variable input declines as more of it is employed with a given quantity of other inputs.

Accepted Answer

A) True 
 B)False

Question 5

School subsidies and capital investment tax incentives are examples of government policy designed to increase productivity.

Accepted Answer

A) True 
 B)False

Question 6

Actual output will always equal the limit described by the production function.

Accepted Answer

A) True 
 B)False

Question 7

An investment in human and nonhuman capital will result in:

Accepted Answer

A)  An increase in the marginal physical product of labor. 
B)  An increase in marginal costs. 
C)  A decrease in the production function. 
D)  A decrease in production possibilities. 
A)  An increase in the marginal physical product of labor. 
B)  An increase in marginal costs. 
C)  A decrease in the production function. 
D)  A decrease in production possibilities.

Question 8

In the long run,a company will stay in business as long as price is:

Accepted Answer

A)  Greater than or equal to marginal costs. 
B)  Equal to variable costs. 
C)  Equal to marginal physical product. 
D)  Greater than or equal to average total costs. 
A)  Greater than or equal to marginal costs. 
B)  Equal to variable costs. 
C)  Equal to marginal physical product. 
D)  Greater than or equal to average total costs.

Question 9

Long-run choices imply that all factors are variable.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following must be considered in long run planning?

Accepted Answer

A)  Production choices. 
B)  Fixed costs. 
C)  Investment choices. 
D)  Declining marginal physical product. 
A)  Production choices. 
B)  Fixed costs. 
C)  Investment choices. 
D)  Declining marginal physical product.

Question 11

Marginal cost will increase with greater output if:

Accepted Answer

A)  Marginal physical product is declining. 
B)  Marginal physical product is increasing. 
C)  Total variable cost is decreasing. 
D)  Total fixed cost is increasing. 
A)  Marginal physical product is declining. 
B)  Marginal physical product is increasing. 
C)  Total variable cost is decreasing. 
D)  Total fixed cost is increasing.

If government policies to increase productivity are successful,then the:

Table 5.1-Labor and output data -What is the marginal physical product of the second unit of labor in Table 5.1?

Table 5.3-Yearbook costs (This table shows the total cost of producing yearbooks using a school's print shop. ) -The marginal cost is at a minimum in Table 5.3 when:

According to the law of diminishing returns,the marginal physical product of a variable input declines as more of it is employed with a given quantity of other inputs.

School subsidies and capital investment tax incentives are examples of government policy designed to increase productivity.

Actual output will always equal the limit described by the production function.

An investment in human and nonhuman capital will result in:

In the long run,a company will stay in business as long as price is:

Long-run choices imply that all factors are variable.

Which of the following must be considered in long run planning?

Marginal cost will increase with greater output if:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

Exam 5: Supply Decisions

If government policies to increase productivity are successful,then the:

Table 5.1-Labor and output data -What is the marginal physical product of the second unit of labor in Table 5.1?

Table 5.3-Yearbook costs (This table shows the total cost of producing yearbooks using a school's print shop. ) -The marginal cost is at a minimum in Table 5.3 when:

According to the law of diminishing returns,the marginal physical product of a variable input declines as more of it is employed with a given quantity of other inputs.

School subsidies and capital investment tax incentives are examples of government policy designed to increase productivity.

Actual output will always equal the limit described by the production function.

An investment in human and nonhuman capital will result in:

In the long run,a company will stay in business as long as price is:

Long-run choices imply that all factors are variable.

Which of the following must be considered in long run planning?

Marginal cost will increase with greater output if:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters