Which of the following statements best summarizes the law of diminishing marginal returns? A) In the short run, as more labor is hired, output diminishes. B) In the short run, as more labor is hired, output increases at a diminishing rate. C) In the short run, the amount of labor a firm will hire diminishes […]
Date: September 9th, 2020
In the long run, all factors of production are A) variable. B) fixed. C) materials. D) rented. ANSWER A
Date: September 9th, 2020
A production function tells the firm 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 […]
Date: September 9th, 2020
If the marginal productivity of labor is constant for all levels of output, then the average productivity of labor A) is constant. B) equals the marginal productivity of labor. C) Both A and B above. D) Either A or B above but not both. ANSWER C
Date: September 9th, 2020
Which of the following is least likely to be considered a capital input? A) a sewing machine B) a tractor C) a telephone D) a ten dollar bill ANSWER D
Date: September 9th, 2020
Production functions only apply to advanced economies. Indicate whether the statement is true or false ANSWER False. Production functions describe the relationship between inputs and outputs, and apply to all kinds of economies.
Date: September 9th, 2020
If the average productivity of labor equals the marginal productivity of labor, then A) the average productivity of labor is at a maximum. B) the marginal productivity of labor is at a maximum. C) Both A and B above. D) Neither A nor B above. ANSWER A
Date: September 9th, 2020
The nonprofit or not-for-profit sector consists of organizations that A) intend to earn a profit. B) are always inefficient. C) are primarily concerned with the welfare of their own employees. D) typically pursue social or public interest objectives. ANSWER D
Date: September 9th, 2020
In China, firms owned by the government are known as A) state-owned enterprises (SOEs). B) government enterprises. C) corporations. D) government owned partnerships. ANSWER A
Date: September 9th, 2020
Since 1999, the number of small state-owned enterprises (SOEs) in China has A) decreased, but the large SOEs continue to hold a large proportion of industrialized assets. B) increased, but large SOEs has decreased. C) decreased along with the large SOEs. D) remained unchanged. ANSWER A
Date: September 9th, 2020
