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
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
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
Which of the following inputs is easier to increase in the short run? A) number of airplanes B) size of the airport terminal C) ticket-counter sales people D) number of luggage carousels ANSWER C
Date: September 9th, 2020
The length of the short run is the same for all firms. Indicate whether the statement is true or false ANSWER False. Firms differ in their ability to change the amount of capital they employ. Therefore, the short-run period is likely different for firms in different industries.
Date: September 9th, 2020
The slope of the total product curve always equals A) the ratio of the marginal product and the average product. B) the change in input divided by the change in output. C) the average product of the input. D) the marginal product of the input. ANSWER D
Date: September 9th, 2020
Total Product is A) the change in total product resulting from an extra unit of labor, holding other factors constant. B) the ratio of output to the number of workers used to produce that output. C) the amount of output that can be produced by a given amount of labor. D) equal to the marginal […]
Date: September 9th, 2020
An increase in unearned income always creates a disincentive to work. Indicate whether the statement is true or false ANSWER False. The effect on labor supply will also depend on the individual’s preferences towards work (leisure).
Date: September 9th, 2020
Which entity produces the greatest proportion of U.S. gross national product? A) government B) non-profit organizations such as hospitals C) firms D) universities ANSWER C
Date: September 9th, 2020
Recent data has shown that income and volunteer time are positively related. Assuming that volunteer time is included in leisure time, what could explain this observation? A) Higher income individuals view leisure as a normal good such that the income effect dominates the substitution effect. B) Higher income individuals view leisure as a normal good […]
Date: September 9th, 2020
