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
The Marginal Product of Labor 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 […]
Date: September 9th, 2020
What is one of the biggest differences between a sole proprietorship and a corporation? A) Sole proprietorships offer stock. B) Corporation shareholders elect the managers of the firm. C) Sole proprietorships have limited liability. D) Corporations are the only profitable firms. ANSWER B
Date: September 9th, 2020
A tax cut will unambiguously lower income-tax revenue. Indicate whether the statement is true or false ANSWER False. It depends on how the quantity of labor supplied responds to the increase in the after-tax wage rate. If the income effect dominates, the quantity of labor supplied falls and so will tax revenue. If the […]
Date: September 9th, 2020
Firms maximize profit when A) the additional benefit from producing a good equals the additional cost of producing that good. B) MR = MC. C) the derivative of the profit function with respect to output is zero. D) All of the above. ANSWER D
Date: September 9th, 2020
