Question 1

According to the text, globalization has led to greater U.S. specialization in:

Accepted Answer

A)  marketing. 
B)  manufacturing. 
C)  farming. 
D)  manual labor. 
A)  marketing. 
B)  manufacturing. 
C)  farming. 
D)  manual labor.

Question 2

Refer to the graph shown. The output range in region b is associated with:

Accepted Answer

A)  diminishing marginal productivity. 
B)  constant returns to scale. 
C)  economies of scale. 
D)  diseconomies of scale. 
A)  diminishing marginal productivity. 
B)  constant returns to scale. 
C)  economies of scale. 
D)  diseconomies of scale.

Question 3

Diseconomies of scale are associated with:

Accepted Answer

A)  an upward-sloping long-run average cost curve. 
B)  an upward-sloping short-run average cost curve. 
C)  a downward-sloping long-run average cost curve. 
D)  a downward-sloping short-run average cost curve. 
A)  an upward-sloping long-run average cost curve. 
B)  an upward-sloping short-run average cost curve. 
C)  a downward-sloping long-run average cost curve. 
D)  a downward-sloping short-run average cost curve.

Question 4

The marginal rate of substitution of an isoquant curve is the rate at which:

Accepted Answer

A)  inputs must be substituted for one another to keep costs constant. 
B)  inputs are substituted for output. 
C)  inputs must be substituted for one another to keep output constant. 
D)  the marginal productivity of a factor declines. 
A)  inputs must be substituted for one another to keep costs constant. 
B)  inputs are substituted for output. 
C)  inputs must be substituted for one another to keep output constant. 
D)  the marginal productivity of a factor declines.

Question 5

The upward-sloping part of the long-run average cost curve is explained by:

Accepted Answer

A)  indivisible setup costs. 
B)  diseconomies of scale. 
C)  output levels that exceed the minimum efficient level of production. 
D)  decreasing marginal productivity. 
A)  indivisible setup costs. 
B)  diseconomies of scale. 
C)  output levels that exceed the minimum efficient level of production. 
D)  decreasing marginal productivity.

Question 6

Learning by doing:

Accepted Answer

A)  causes average total cost curves to be downward-sloping. 
B)  shifts average total cost curves downward. 
C)  offsets diseconomies of scale, making the average total cost curve flat. 
D)  is not important in the real world. 
A)  causes average total cost curves to be downward-sloping. 
B)  shifts average total cost curves downward. 
C)  offsets diseconomies of scale, making the average total cost curve flat. 
D)  is not important in the real world.

Question 7

The upward-sloping portion of the short-run average total cost curve is caused by:

Accepted Answer

A)  indivisible setup costs. 
B)  diseconomies of scale. 
C)  the absence of fixed inputs. 
D)  the presence of fixed inputs. 
A)  indivisible setup costs. 
B)  diseconomies of scale. 
C)  the absence of fixed inputs. 
D)  the presence of fixed inputs.

Question 8

Economies of scale occur when a firm's long-run average total cost curve is:

Accepted Answer

A)  upward-sloping. 
B)  vertical. 
C)  downward-sloping. 
D)  horizontal. 
A)  upward-sloping. 
B)  vertical. 
C)  downward-sloping. 
D)  horizontal.

Question 9

If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an accountant most likely would say that:

Accepted Answer

A)  the machine's cost for each of its 20 years of existence is $2,500. 
B)  the machine's cost for each of its 20 years of existence is $3,000. 
C)  during the first year the machine had no cost; it provided a revenue to the firm. 
D)  the value of the machine will continue to increase 20 percent per year for the next 20 years. 
A)  the machine's cost for each of its 20 years of existence is $2,500. 
B)  the machine's cost for each of its 20 years of existence is $3,000. 
C)  during the first year the machine had no cost; it provided a revenue to the firm. 
D)  the value of the machine will continue to increase 20 percent per year for the next 20 years.

According to the text, globalization has led to greater U.S. specialization in:

Refer to the graph shown. The output range in region b is associated with:

Diseconomies of scale are associated with:

The marginal rate of substitution of an isoquant curve is the rate at which:

The upward-sloping part of the long-run average cost curve is explained by:

Learning by doing:

The upward-sloping portion of the short-run average total cost curve is caused by:

Economies of scale occur when a firm's long-run average total cost curve is:

If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an accountant most likely would say that:

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Production and Cost Analysis I

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Work and the Labor Market

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Thinking Like a Modern Economist

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

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Exam 12: Production and Cost Analysis II

According to the text, globalization has led to greater U.S. specialization in:

Refer to the graph shown. The output range in region b is associated with:

Diseconomies of scale are associated with:

The marginal rate of substitution of an isoquant curve is the rate at which:

The upward-sloping part of the long-run average cost curve is explained by:

Learning by doing:

The upward-sloping portion of the short-run average total cost curve is caused by:

Economies of scale occur when a firm's long-run average total cost curve is:

If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an accountant most likely would say that:

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Production and Cost Analysis I

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Work and the Labor Market

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Thinking Like a Modern Economist

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Filters