Question 1

Figure 7-1 shows the total product curve for different levels of a variable input,labor.
Figure 7-1 
-In Figure 7-1,marginal product of labor is positive but lesser than the average product of labor after point _____.

Accepted Answer

A)  A
B)  B
C)  C
D)  DE) A) and B)
F) B) and D)

Question 2

The fact that limited use of caffeine can improve mental alertness and help performance,while excessive use of caffeine can cause anxiety and trembling shows _____.

Accepted Answer

A)  that coffee is an inferior good
B)  the law of diminishing marginal returns with respect to test performance
C)  the law of returns to scale with respect to test performance
D)  decreasing returns to scale in coffee productionE) A) and B)
F) None of the above

Question 3

A firm that is operating in a technologically inefficient way:

Accepted Answer

A)  is getting the maximum output from its inputs.
B)  is making zero economic profits.
C)  is not making as much money as it potentially can.
D)  should shut down immediately to reduce its losses.E) None of the above
F) A) and D)

Question 4

The slope of a ray from the origin to the total product curve measures _____.

Accepted Answer

A)  the marginal rate of technical substitution
B)  the marginal product of the variable factor
C)  the average product of the variable factor
D)  the maximum outputE) C) and D)
F) B) and D)

Question 5

Figure 7-2 shows the total product curve for different levels of a variable input,labor.
Figure 7-2 
-In Figure 7.3,the law of diminishing marginal returns comes into play beyond point _____.

Accepted Answer

A)  A
B)  B
C)  C
D)  DE) None of the above
F) All of the above

Question 6

A carpenter hammers nails each day at work.During the first hour she can hammer 120 nails,the second hour 100 nails,the third hour 90 nails,the fourth hour 60 nails,and the fifth hour 10 nails.Her marginal product in the third hour is _____ nails.

Accepted Answer

A)  10
B)  -10
C)  90
D)  -60E) A) and C)
F) A) and B)

Question 7

When the marginal and average products of labor are equal:

Accepted Answer

A)  marginal product must be at its maximum.
B)  marginal product must be at a minimum.
C)  average product must be at its maximum.
D)  average product must be increasing.E) B) and C)
F) A) and D)

Question 8

A factory that manually produces pens employs ten workers.The total output when one worker produces all the parts of a pen himself is 100 pens.When different workers focus on producing different parts of the pen,the output increases to 400 pens.In other words,_____ increases the returns from the same level of inputs.

Accepted Answer

A)  increasing the capital-labor ratio/irs
B)  product diversification
C)  a piece rate wage system
D)  specialization of laborE) A) and B)
F) None of the above

Question 9

Table 7.1 shows the quantities of labor and capital required to produce various levels of output.
Table 7-1   Amount of  Capital  Amount of  Labor  Total Product 5110522453425456556656745780\begin{array} { | c | c | c | } \hline \begin{array} { c } 	ext { Amount of } \	ext { Capital }\end{array} & \begin{array} { c } 	ext { Amount of } \	ext { Labor }\end{array} & 	ext { Total Product } \\hline 5 & 1 & 10 \\hline 5 & 2 & 24 \\hline 5 & 3 & 42 \\hline 5 & 4 & 56 \\hline 5 & 5 & 66 \\hline 5 & 6 & 74 \\hline 5 & 7 & 80 \\hline\end{array} Amount of  Capital ​5555555​ Amount of  Labor ​1234567​ Total Product 10244256667480​​ 
-Refer to Table 7-1.What is the average product of labor when four units of labor are used?

Accepted Answer

A)  10
B)  14
C)  42
D)  33 E) A) and D)
F) A) and C)

Question 10

Figure 7-2 shows the total product curve for different levels of a variable input,labor.
Figure 7-2 
-When the quantity of labor employed lies between points C and D in Figure 7-2:

Accepted Answer

A)  marginal product reaches a maximum.
B)  average product is rising and reaches a maximum at D.
C)  total product declines.
D)  marginal product is falling.E) B) and C)
F) A) and D)

Question 11

A carpenter hammers nails each day at work.The average number of nails hammered over the first three hours is 50,and the marginal product of the fourth and fifth hours of work is 40 and 20 nails,respectively.The total output after five hours work is _____ nails.

Accepted Answer

A)  150
B)  110
C)  210
D)  60E) None of the above
F) A) and C)

Question 12

With energy [E] on the horizontal axis and land [L] on the vertical axis,the marginal rate of technical substitution of energy for land (MRTSEL) equals:

Accepted Answer

A)  MPL/MPE
B)  - Δ\DeltaΔ E/ Δ\DeltaΔ L
C)  - Δ\DeltaΔ Q/ Δ\DeltaΔ L
D)  (MPL/ Δ\DeltaΔ 
E)  ( Δ\DeltaΔ L/MP
E)   E) None of the above
F) A) and D)

Exam 7: Production

A carpenter hammers nails each day at work.The average number of nails hammered over the first three hours is 50,and the marginal product of the fourth and fifth hours of work is 40 and 20 nails,respectively.The total output after five hours work is _____ nails.

Correct Answer
verified

Figure 7-2 shows the total product curve for different levels of a variable input,labor. Figure 7-2 -When the quantity of labor employed lies between points C and D in Figure 7-2:

Correct Answer
verified

When the marginal and average products of labor are equal:

Correct Answer
verified

A carpenter hammers nails each day at work.During the first hour she can hammer 120 nails,the second hour 100 nails,the third hour 90 nails,the fourth hour 60 nails,and the fifth hour 10 nails.Her marginal product in the third hour is _____ nails.

Correct Answer
verified

The fact that limited use of caffeine can improve mental alertness and help performance,while excessive use of caffeine can cause anxiety and trembling shows _____.

Correct Answer
verified

A firm that is operating in a technologically inefficient way:

Correct Answer
verified

Figure 7-1 shows the total product curve for different levels of a variable input,labor. Figure 7-1 -In Figure 7-1,marginal product of labor is positive but lesser than the average product of labor after point _____.

Correct Answer
verified

With energy [E] on the horizontal axis and land [L] on the vertical axis,the marginal rate of technical substitution of energy for land (MRTS_EL) equals:

Correct Answer
verified

The slope of a ray from the origin to the total product curve measures _____.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 7-2 shows the total product curve for different levels of a variable input,labor. Figure 7-2 -In Figure 7.3,the law of diminishing marginal returns comes into play beyond point _____.

Correct Answer
verified

Exam 7: Production

A carpenter hammers nails each day at work.The average number of nails hammered over the first three hours is 50,and the marginal product of the fourth and fifth hours of work is 40 and 20 nails,respectively.The total output after five hours work is _____ nails.

Correct AnswerverifiedShow Answer

Figure 7-2 shows the total product curve for different levels of a variable input,labor. Figure 7-2 -When the quantity of labor employed lies between points C and D in Figure 7-2:

Correct AnswerverifiedShow Answer

When the marginal and average products of labor are equal:

Correct AnswerverifiedShow Answer

A carpenter hammers nails each day at work.During the first hour she can hammer 120 nails,the second hour 100 nails,the third hour 90 nails,the fourth hour 60 nails,and the fifth hour 10 nails.Her marginal product in the third hour is _____ nails.

Correct AnswerverifiedShow Answer

The fact that limited use of caffeine can improve mental alertness and help performance,while excessive use of caffeine can cause anxiety and trembling shows _____.

Correct AnswerverifiedShow Answer

A firm that is operating in a technologically inefficient way:

Correct AnswerverifiedShow Answer

Figure 7-1 shows the total product curve for different levels of a variable input,labor. Figure 7-1 -In Figure 7-1,marginal product of labor is positive but lesser than the average product of labor after point _____.

Correct AnswerverifiedShow Answer

With energy [E] on the horizontal axis and land [L] on the vertical axis,the marginal rate of technical substitution of energy for land (MRTSEL) equals:

Correct AnswerverifiedShow Answer

The slope of a ray from the origin to the total product curve measures _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 7-2 shows the total product curve for different levels of a variable input,labor. Figure 7-2 -In Figure 7.3,the law of diminishing marginal returns comes into play beyond point _____.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

With energy [E] on the horizontal axis and land [L] on the vertical axis,the marginal rate of technical substitution of energy for land (MRTS_EL) equals:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified