Question 1

Suppose Q = KaLb,if a + b < 1 the isoquants will be

Accepted Answer

A) upward sloping. 
B) progressively closer together at higher quantities. 
C) progressively further apart at higher quantities. 
D) equally spaced. 
A) upward sloping. 
B) progressively closer together at higher quantities. 
C) progressively further apart at higher quantities. 
D) equally spaced.

Question 2

For a fixed proportion production function,at the vertex of any of the (L-shaped)isoquants the marginal productivity of either input is

Accepted Answer

A) constant 
B) zero. 
C) negative. 
D) a value that cannot be determined. 
A) constant 
B) zero. 
C) negative. 
D) a value that cannot be determined.

Question 3

If more and more labor is employed while keeping all other inputs constant,the marginal physical productivity of labor

Accepted Answer

A) will eventually increase. 
B) will eventually decrease. 
C) will eventually remain constant. 
D) cannot tell from the information provided. 
A) will eventually increase. 
B) will eventually decrease. 
C) will eventually remain constant. 
D) cannot tell from the information provided.

Question 4

Suppose Q = KaLb,if a + b > 1 the isoquants will be

Accepted Answer

A) upward sloping. 
B) progressively closer together at higher quantities. 
C) progressively further apart at higher quantities. 
D) equally spaced. 
A) upward sloping. 
B) progressively closer together at higher quantities. 
C) progressively further apart at higher quantities. 
D) equally spaced.

Question 5

A firm's isoquant shows

Accepted Answer

A) the amount of labor needed to produce a given level of output with capital held constant. 
B) the amount of capital needed to produce a given level of output with labor held constant. 
C) the various combinations of capital and labor that will produce a given amount of output. 
D) None of the above. 
A) the amount of labor needed to produce a given level of output with capital held constant. 
B) the amount of capital needed to produce a given level of output with labor held constant. 
C) the various combinations of capital and labor that will produce a given amount of output. 
D) None of the above.

Question 6

A production function measures how an individual maximizes utility.

Accepted Answer

A) a firm transforms output into input. 
B) a firm transforms inputs into output. 
C) a firm minimizes cost. 
A) a firm transforms output into input. 
B) a firm transforms inputs into output. 
C) a firm minimizes cost.

Question 7

When isoquants get progressively further apart there is

Accepted Answer

A) increasing returns to scale 
B) decreasing returns to scale 
C) constant returns to scale 
A) increasing returns to scale 
B) decreasing returns to scale 
C) constant returns to scale

Question 8

Suppose the production function for good q is given by q = 3K + 2 L where K and L are capital and labor inputs.Consider three statements about this function: Which of these statements is true?
I.The function exhibits constant returns to scale.
II.The function exhibits diminishing marginal productivities to all inputs.
III.The function has a constant rate of technical substitution.

Accepted Answer

A) All of them. 
B) None of them. 
C) I and II but not III. 
D) I and III but not II. 
E) only I. 
A) All of them. 
B) None of them. 
C) I and II but not III. 
D) I and III but not II. 
E) only I.

Question 9

In a two-input model you can tell that a non-optimal short-run production decision is being made if

Accepted Answer

A) all decisions in the short run are nonoptimal 
B) the rate of technical substitution is equal to the ratio of the input prices 
C) the rate of technical substitution is not equal to the ratio of the input prices 
A) all decisions in the short run are nonoptimal 
B) the rate of technical substitution is equal to the ratio of the input prices 
C) the rate of technical substitution is not equal to the ratio of the input prices

Question 10

The average productivity of capital is defined as the ratio of total capital employed to the total output produced.

Accepted Answer

A) the extra output produced by employing one more unit of capital while holding other inputs constant. 
B) the extra output produced by employing one more unit of capital while allowing other inputs to vary. 
C) the ratio of total output produced to the quantity of capital employed. 
A) the extra output produced by employing one more unit of capital while holding other inputs constant. 
B) the extra output produced by employing one more unit of capital while allowing other inputs to vary. 
C) the ratio of total output produced to the quantity of capital employed.

Question 11

If production is given by Q = KsLb,(a + b < 1)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 12

When isoquants get progressively closer together there is

Accepted Answer

A) increasing returns to scale 
B) decreasing returns to scale 
C) constant returns to scale 
A) increasing returns to scale 
B) decreasing returns to scale 
C) constant returns to scale

Question 13

With a cubic production with fixed capital Q = A + BL + CL2 + DL3 and a 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.

Question 14

If Q = K2L2 the MPK is

Accepted Answer

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

Question 15

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

Accepted Answer

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

Question 16

A production function may exhibit

Accepted Answer

A) constant returns to scale and diminishing marginal productivities to all inputs. 
B) constant returns to scale and diminishing marginal productivities to all but one input,but at least one input must have a constant marginal productivity. 
C) constant returns to scale and diminishing marginal productivity to at most one input. 
D) constant returns to scale and diminishing marginal productivities for no inputs. 
A) constant returns to scale and diminishing marginal productivities to all inputs. 
B) constant returns to scale and diminishing marginal productivities to all but one input,but at least one input must have a constant marginal productivity. 
C) constant returns to scale and diminishing marginal productivity to at most one input. 
D) constant returns to scale and diminishing marginal productivities for no inputs.

Suppose Q = K^aL^b,if a + b < 1 the isoquants will be

For a fixed proportion production function,at the vertex of any of the (L-shaped)isoquants the marginal productivity of either input is

If more and more labor is employed while keeping all other inputs constant,the marginal physical productivity of labor

Suppose Q = K^aL^b,if a + b > 1 the isoquants will be

A firm's isoquant shows

A production function measures how an individual maximizes utility.

When isoquants get progressively further apart there is

In a two-input model you can tell that a non-optimal short-run production decision is being made if

The average productivity of capital is defined as the ratio of total capital employed to the total output produced.

If production is given by Q = K^sL^b,(a + b < 1)doubling both inputs

When isoquants get progressively closer together there is

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

If Q = K²L² the MP_K is

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

A production function may exhibit

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

Exam 6: Production

Suppose Q = KaLb,if a + b < 1 the isoquants will be

For a fixed proportion production function,at the vertex of any of the (L-shaped)isoquants the marginal productivity of either input is

If more and more labor is employed while keeping all other inputs constant,the marginal physical productivity of labor

Suppose Q = KaLb,if a + b > 1 the isoquants will be

A firm's isoquant shows

A production function measures how an individual maximizes utility.

When isoquants get progressively further apart there is

In a two-input model you can tell that a non-optimal short-run production decision is being made if

The average productivity of capital is defined as the ratio of total capital employed to the total output produced.

If production is given by Q = KsLb,(a + b < 1)doubling both inputs

When isoquants get progressively closer together there is

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

If Q = K2L2 the MPK is

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

A production function may exhibit

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

Suppose Q = K^aL^b,if a + b < 1 the isoquants will be

Suppose Q = K^aL^b,if a + b > 1 the isoquants will be

If production is given by Q = K^sL^b,(a + b < 1)doubling both inputs

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

If Q = K²L² the MP_K is

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