Question 1

A rise in the average productivity of labor

Accepted Answer

A) always reflects technical progress. 
B) reflects technical progress if other input usage hasn't changed. 
C) reflects technical progress only if labor input hasn't changed. 
D) reflects technical progress only if the quantity of output is increased. 
A) always reflects technical progress. 
B) reflects technical progress if other input usage hasn't changed. 
C) reflects technical progress only if labor input hasn't changed. 
D) reflects technical progress only if the quantity of output is increased. B

Question 2

With a quadratic production with fixed capital Q = A + BL + CL2 and the shape shown above,A is

Accepted Answer

A) positive and greater than B. 
B) positive and less than B. 
C) zero. 
D) negative. 
A) positive and greater than B. 
B) positive and less than B. 
C) zero. 
D) negative. C

Question 3

The production function $q = \sqrt { K L }$

Accepted Answer

A) exhibits constant returns to scale and constant marginal productivities for K and L. 
B) exhibits diminishing returns to scale and diminishing marginal productivities for K and L. 
C) exhibits constant returns to scale and diminishing marginal productivities for K and L. 
D) exhibits diminishing returns to scale and constant marginal productivities for K and L.. 
A) exhibits constant returns to scale and constant marginal productivities for K and L. 
B) exhibits diminishing returns to scale and diminishing marginal productivities for K and L. 
C) exhibits constant returns to scale and diminishing marginal productivities for K and L. 
D) exhibits diminishing returns to scale and constant marginal productivities for K and L.. C

Question 4

With a cubic production with fixed capital Q = A + BL + CL2 + DL3 and a shape shown above,C is

Accepted Answer

A) positive. 
B) zero. 
C) negative and less than D. 
D) negative and greater than D. 
A) positive. 
B) zero. 
C) negative and less than D. 
D) negative and greater than D.

Question 5

With a quadratic production with fixed capital Q = A + BL + CL2 and the shape shown above,B is

Accepted Answer

A) positive. 
B) zero. 
C) negative and less than C. 
D) negative and greater than C. 
A) positive. 
B) zero. 
C) negative and less than C. 
D) negative and greater than C.

Question 6

A fixed-proportion production function has isoquants that are

Accepted Answer

A) almost flat (i.e.,the isoquants are almost straight lines). 
B) L-shaped. 
C) normally shaped (rectangular hyperbolas). 
D) None of the above. 
A) almost flat (i.e.,the isoquants are almost straight lines). 
B) L-shaped. 
C) normally shaped (rectangular hyperbolas). 
D) None of the above.

Question 7

Suppose electricity (E)can be produced with coal (C)or gas (G)to operate steam turbines (T).Suppose gas is more efficiently burned than coal but that they are otherwise perfect substitutes.E = min((G + .5C),T). The isoquants between gas and coal will be

Accepted Answer

A) hyperbolas 
B) quarter circles 
C) straight lines 
A) hyperbolas 
B) quarter circles 
C) straight lines

Question 8

If,as a result of doubling all its inputs,a firm can more than double its output,the firm's production function exhibits

Accepted Answer

A) constant returns to scale. 
B) increasing returns to scale. 
C) decreasing returns to scale. 
D) increasing marginal productivity to at least one input. 
A) constant returns to scale. 
B) increasing returns to scale. 
C) decreasing returns to scale. 
D) increasing marginal productivity to at least one input.

Question 9

The marginal rate of technical substitution of labor for capital measures

Accepted Answer

A) the amount by which capital input can be reduced while holding quantity produced constant when one more unit of labor is used. 
B) the amount by which labor input can be reduced while holding quantity produced constant when one more unit of capital is used. 
C) the ratio of total labor to total capital. 
D) the ratio of total capital to total labor. 
A) the amount by which capital input can be reduced while holding quantity produced constant when one more unit of labor is used. 
B) the amount by which labor input can be reduced while holding quantity produced constant when one more unit of capital is used. 
C) the ratio of total labor to total capital. 
D) the ratio of total capital to total labor.

Question 10

The marginal physical product of labor is defined as

Accepted Answer

A) a firm's total output divided by total labor input. 
B) the extra output produced by employing one more unit of labor while allowing other inputs to vary. 
C) the extra output produced by employing one more unit of labor while holding other inputs constant. 
D) the extra output produced by employing one more unit of capital while holding labor input constant. 
A) a firm's total output divided by total labor input. 
B) the extra output produced by employing one more unit of labor while allowing other inputs to vary. 
C) the extra output produced by employing one more unit of labor while holding other inputs constant. 
D) the extra output produced by employing one more unit of capital while holding labor input constant.

Question 11

A firm is defined as

Accepted Answer

A) a president,some vice presidents,and some employees. 
B) any organization that wants to make a profit. 
C) any accumulation of productive assets. 
D) any organization that turns inputs into outputs. 
A) a president,some vice presidents,and some employees. 
B) any organization that wants to make a profit. 
C) any accumulation of productive assets. 
D) any organization that turns inputs into outputs.

Question 12

If Q = K1/3L2 the MPL is

Accepted Answer

A) constant 
B) diminishing 
C) increasing 
A) constant 
B) diminishing 
C) increasing

Question 13

If Q = K1/3L2 the MPK is

Accepted Answer

A) constant 
B) diminishing 
C) increasing 
A) constant 
B) diminishing 
C) increasing

Question 14

A firm's rate of technical substitution is represented graphically by

Accepted Answer

A) the slope of the line connecting the origin with the relevant point on the isoquant. 
B) the negative of the slope of the line connecting the origin with the relevant point on the isoquant. 
C) the slope of the isoquant at the relevant point. 
D) the negative of the slope of the isoquant at the relevant point. 
A) the slope of the line connecting the origin with the relevant point on the isoquant. 
B) the negative of the slope of the line connecting the origin with the relevant point on the isoquant. 
C) the slope of the isoquant at the relevant point. 
D) the negative of the slope of the isoquant at the relevant point.

Question 15

A technical innovation in the production of automobiles by Ford Motor Company's for 1 million cars per year would necessarily

Accepted Answer

A) shift the "1 million car" isoquant away from the origin. 
B) shift the "1 million car" isoquant toward the origin. 
C) cause 1 million cars to be produced with more capital and less labor. 
D) cause 1 million cars to be produced with more labor and less capital. 
A) shift the "1 million car" isoquant away from the origin. 
B) shift the "1 million car" isoquant toward the origin. 
C) cause 1 million cars to be produced with more capital and less labor. 
D) cause 1 million cars to be produced with more labor and less capital.

Question 16

The marginal physical product of labor is

Accepted Answer

A) the slope of the total output curve at the relevant point. 
B) the negative of the slope of the total output curve at the relevant point. 
C) the slope of the line connecting the origin with the relevant point on the total output curve. 
D) the negative of the slope of the line connecting the origin with the relevant point on the total output curve. 
A) the slope of the total output curve at the relevant point. 
B) the negative of the slope of the total output curve at the relevant point. 
C) the slope of the line connecting the origin with the relevant point on the total output curve. 
D) the negative of the slope of the line connecting the origin with the relevant point on the total output curve.

Question 17

If Q = K2L2 the MPL is

Accepted Answer

A) constant 
B) diminishing 
C) increasing 
A) constant 
B) diminishing 
C) increasing

Question 18

If production is given by Q = KL,doubling both inputs

Accepted Answer

A) more than doubles output. 
B) exactly doubles output. 
C) increases output but does not double it. 
D) leaves output unchanged. 
A) more than doubles output. 
B) exactly doubles output. 
C) increases output but does not double it. 
D) leaves output unchanged.

Question 19

Graphically,the average productivity of labor would be illustrated by the slope of the marginal productivity curve at the relevant point.

Accepted Answer

A) the slope of the total product curve at the relevant point. 
B) the slope of the marginal productivity curve at the relevant point. 
C) the negative of the slope of the marginal productivity curve at the relevant point. 
D) the slope of the chord connecting the origin with the relevant point on the total output curve. 
A) the slope of the total product curve at the relevant point. 
B) the slope of the marginal productivity curve at the relevant point. 
C) the negative of the slope of the marginal productivity curve at the relevant point. 
D) the slope of the chord connecting the origin with the relevant point on the total output curve.

Question 20

If Q = K1/2L1/2 the MPL is

Accepted Answer

A) constant 
B) increasing 
C) diminishing 
A) constant 
B) increasing 
C) diminishing

A rise in the average productivity of labor

With a quadratic production with fixed capital Q = A + BL + CL² and the shape shown above,A is

The production function $q = \sqrt { K L }$

With a cubic production with fixed capital Q = A + BL + CL² + DL³ and a shape shown above,C is

With a quadratic production with fixed capital Q = A + BL + CL² and the shape shown above,B is

A fixed-proportion production function has isoquants that are

Suppose electricity (E)can be produced with coal (C)or gas (G)to operate steam turbines (T).Suppose gas is more efficiently burned than coal but that they are otherwise perfect substitutes.E = min((G + .5C),T). The isoquants between gas and coal will be

If,as a result of doubling all its inputs,a firm can more than double its output,the firm's production function exhibits

The marginal rate of technical substitution of labor for capital measures

The marginal physical product of labor is defined as

A firm is defined as

If Q = K^1/3L²the MP_L is

If Q = K^1/3L² the MP_K is

A firm's rate of technical substitution is represented graphically by

A technical innovation in the production of automobiles by Ford Motor Company's for 1 million cars per year would necessarily

The marginal physical product of labor is

If Q = K²L² the MP_L is

If production is given by Q = KL,doubling both inputs

Graphically,the average productivity of labor would be illustrated by the slope of the marginal productivity curve at the relevant point.

If Q = K^1/2L^1/2 the MP_L is

Economic Models

Utility and Choice

Demand Curves

Uncertainty

Game Theory

Costs

Profit Maximization and Supply

Perfect Competition in a Single Market

General Equilibrium and Welfare

Monopoly

Imperfect Competition

Pricing in Input Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Behavioral Economics

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Exam 6: Production

A rise in the average productivity of labor

With a quadratic production with fixed capital Q = A + BL + CL2 and the shape shown above,A is

The production function q=KLq = \sqrt { K L }q=KL​

With a cubic production with fixed capital Q = A + BL + CL2 + DL3 and a shape shown above,C is

With a quadratic production with fixed capital Q = A + BL + CL2 and the shape shown above,B is

A fixed-proportion production function has isoquants that are

Suppose electricity (E)can be produced with coal (C)or gas (G)to operate steam turbines (T).Suppose gas is more efficiently burned than coal but that they are otherwise perfect substitutes.E = min((G + .5C),T). The isoquants between gas and coal will be

If,as a result of doubling all its inputs,a firm can more than double its output,the firm's production function exhibits

The marginal rate of technical substitution of labor for capital measures

The marginal physical product of labor is defined as

A firm is defined as

If Q = K1/3L2 the MPL is

If Q = K1/3L2 the MPK is

A firm's rate of technical substitution is represented graphically by

A technical innovation in the production of automobiles by Ford Motor Company's for 1 million cars per year would necessarily

The marginal physical product of labor is

If Q = K2L2 the MPL is

If production is given by Q = KL,doubling both inputs

Graphically,the average productivity of labor would be illustrated by the slope of the marginal productivity curve at the relevant point.

If Q = K1/2L1/2 the MPL is

Economic Models

Utility and Choice

Demand Curves

Uncertainty

Game Theory

Costs

Profit Maximization and Supply

Perfect Competition in a Single Market

General Equilibrium and Welfare

Monopoly

Imperfect Competition

Pricing in Input Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Behavioral Economics

Filters

With a quadratic production with fixed capital Q = A + BL + CL² and the shape shown above,A is

The production function $q = \sqrt { K L }$

With a cubic production with fixed capital Q = A + BL + CL² + DL³ and a shape shown above,C is

With a quadratic production with fixed capital Q = A + BL + CL² and the shape shown above,B is

If Q = K^1/3L²the MP_L is

If Q = K^1/3L² the MP_K is

If Q = K²L² the MP_L is

If Q = K^1/2L^1/2 the MP_L is