Question 1

Technically inefficient points are points contained in neither the production set nor the production function.

Accepted Answer

A) True 
 B)False

Question 2

-Average product reaches a maximum when labor equals:

Accepted Answer

A) 100 
B) 200 
C) 300 
D) 400 
A) 100 
B) 200 
C) 300 
D) 400

Question 3

For a simple graph of a production function with Q on the y-axis and L on the x-axis, the average product of labor is never equal to the slope of the ray from the origin to the apex of the production function.

Accepted Answer

A) True 
 B)False

Question 4

When the marginal product curve lies above the average product curve, then average product is rising.

Accepted Answer

A) True 
 B)False

Question 5

If marginal product is greater than average product:

Accepted Answer

A) total product must be increasing. 
B) marginal product must be decreasing. 
C) marginal product must be increasing. 
D) average product may be increasing or decreasing. 
A) total product must be increasing. 
B) marginal product must be decreasing. 
C) marginal product must be increasing. 
D) average product may be increasing or decreasing.

Question 6

Decreasing returns to scale and diminishing marginal returns are just two different ways of saying the same thing.

Accepted Answer

A) True 
 B)False

Question 7

-Marginal product reaches a maximum when labor equals:

Accepted Answer

A) 100 
B) 200 
C) 300 
D) 400 
A) 100 
B) 200 
C) 300 
D) 400

Question 8

Suppose a production function has only one input, labor. What can you tell about the slope of the production function, assuming output is on the y-axis and labor is on the x-axis, if production exhibits constant marginal returns to labor?

Accepted Answer

A) The slope of the production function is positive and increasing exponentially. 
B) The slope of the production function is a positive constant. 
C) The slope of the production function is negative. 
D) The slope cannot be determined. 
A) The slope of the production function is positive and increasing exponentially. 
B) The slope of the production function is a positive constant. 
C) The slope of the production function is negative. 
D) The slope cannot be determined.

Question 9

-*Diminishing marginal returns set in at labor equals:

Accepted Answer

A) 100 
B) 200 
C) 300 
D) 400 
A) 100 
B) 200 
C) 300 
D) 400

Question 10

For the production function $Q = a K + b L$, where the variables are graphed as usual, the equation for a typical isoquant is $K = \frac { Q ^ { 2 } } { L }$.

Accepted Answer

A) True 
 B)False

Question 11

Technically inefficient points are points that are never observed in practice.

Accepted Answer

A) True 
 B)False

Question 12

When the marginal product of labor is falling, the average product of labor is falling.

Accepted Answer

A) True 
 B)False

Question 13

Increasing marginal returns occur when the total product function is:

Accepted Answer

A) decreasing. 
B) increasing at a decreasing rate. 
C) increasing at a constant rate. 
D) Increasing at an increasing rate. 
A) decreasing. 
B) increasing at a decreasing rate. 
C) increasing at a constant rate. 
D) Increasing at an increasing rate.

Question 14

An isoquant represents:

Accepted Answer

A) all combinations of inputs that produce a given level of output at the same cost. 
B) all combinations of inputs that produce a given level of output. 
C) all combinations of output that require the same levels of inputs. 
D) all combinations of inputs that cost the same amount. 
A) all combinations of inputs that produce a given level of output at the same cost. 
B) all combinations of inputs that produce a given level of output. 
C) all combinations of output that require the same levels of inputs. 
D) all combinations of inputs that cost the same amount.

Question 15

$$\begin{array} { | l | l | l | l | l | l | } 
\hline & \mathrm { K } = 0 & \mathrm {~K} = 1 & \mathrm {~K} = 2 & \mathrm {~K} = 3 & \mathrm {~K} = 4 \
\hline \mathrm { L } = 0 & 0 & 0 & 0 & 0 & 0 \
\hline \mathrm { L } = 1 & 0 & 1 & 2 & 3 & 4 \
\hline \mathrm { L } = 2 & 0 & 8 & 16 & 24 & 32 \
\hline \mathrm { L } = 3 & 0 & 27 & 54 & 81 & 108 \
\hline \mathrm { L } = 4 & 0 & 64 & 128 & 192 & 256 \
\hline
\end{array}$$
-Based on the table above, holding capital constant at 3 units, the marginal productivity of the second laborer is

Accepted Answer

A) 8. 
B) 12. 
C) 21. 
D) 24. 
A) 8. 
B) 12. 
C) 21. 
D) 24.

Question 16

Let a firm's production function be $Q = 100 ( a L + b K )$. The production function then becomes $Q = 500 ( a L + b K )$. Labor-saving technological progress has occurred.

Accepted Answer

A) True 
 B)False

Question 17

For a simple graph of a production function with Q on the y-axis and L on the x-axis, the average product of labor is equal to the slope of the ray from the origin to the apex of the production function for all values of L.

Accepted Answer

A) True 
 B)False

Question 18

Consider comparing the relationship between marginal and average product. The relationship between MPL and APL is not the same as the relationship between the marginal of anything and the average of anything.

Accepted Answer

A) True 
 B)False

Question 19

$$\text { For the production function } \mathrm { Q } = \mathrm { aL } + \mathrm { bK } \text {, where } \mathrm { a } \text { and } \mathrm { b } \text { are constants, the } M R T S _ { L , K }$$

Accepted Answer

A) declines as the firm substitutes labor for capital. 
B) remains constant as the firm substitutes labor for capital. 
C) implies upward-sloping, straight-line isoquants. 
D) is undefined. 
A) declines as the firm substitutes labor for capital. 
B) remains constant as the firm substitutes labor for capital. 
C) implies upward-sloping, straight-line isoquants. 
D) is undefined.

Question 20

The $M R T S _ { L , K } =$____

Accepted Answer

A)  $\frac { M P _ { K } } { M P _ { L } }$ 
B)  $\frac { - \Delta L } { \Delta K }$ 
C)  $\frac { M P _ { L } } { M P _ { K } }$ 
D)  $\frac { - M P _ { K } } { M P _ { L } }$ 
A)  $\frac { M P _ { K } } { M P _ { L } }$ 
B)  $\frac { - \Delta L } { \Delta K }$ 
C)  $\frac { M P _ { L } } { M P _ { K } }$ 
D)  $\frac { - M P _ { K } } { M P _ { L } }$

Technically inefficient points are points contained in neither the production set nor the production function.

-Average product reaches a maximum when labor equals:

For a simple graph of a production function with Q on the y-axis and L on the x-axis, the average product of labor is never equal to the slope of the ray from the origin to the apex of the production function.

When the marginal product curve lies above the average product curve, then average product is rising.

If marginal product is greater than average product:

Decreasing returns to scale and diminishing marginal returns are just two different ways of saying the same thing.

-Marginal product reaches a maximum when labor equals:

Suppose a production function has only one input, labor. What can you tell about the slope of the production function, assuming output is on the y-axis and labor is on the x-axis, if production exhibits constant marginal returns to labor?

-*Diminishing marginal returns set in at labor equals:

For the production function $Q = a K + b L$ , where the variables are graphed as usual, the equation for a typical isoquant is $K = \frac { Q ^ { 2 } } { L }$ .

Technically inefficient points are points that are never observed in practice.

When the marginal product of labor is falling, the average product of labor is falling.

Increasing marginal returns occur when the total product function is:

An isoquant represents:

=0 =1 =2 =3 =4 =0 0 0 0 0 0 =1 0 1 2 3 4 =2 0 8 16 24 32 =3 0 27 54 81 108 =4 0 64 128 192 256 -Based on the table above, holding capital constant at 3 units, the marginal productivity of the second laborer is

Let a firm's production function be $Q = 100 ( a L + b K )$ . The production function then becomes $Q = 500 ( a L + b K )$ . Labor-saving technological progress has occurred.

For a simple graph of a production function with Q on the y-axis and L on the x-axis, the average product of labor is equal to the slope of the ray from the origin to the apex of the production function for all values of L.

Consider comparing the relationship between marginal and average product. The relationship between MPL and APL is not the same as the relationship between the marginal of anything and the average of anything.

$\text { For the production function } \mathrm { Q } = \mathrm { aL } + \mathrm { bK } \text {, where } \mathrm { a } \text { and } \mathrm { b } \text { are constants, the } M R T S _ { L , K }$

The $M R T S _ { L , K } =$ ____

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets: Applications

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

Exam 6: Inputs and Production Functions

Technically inefficient points are points contained in neither the production set nor the production function.

-Average product reaches a maximum when labor equals:

For a simple graph of a production function with Q on the y-axis and L on the x-axis, the average product of labor is never equal to the slope of the ray from the origin to the apex of the production function.

When the marginal product curve lies above the average product curve, then average product is rising.

If marginal product is greater than average product:

Decreasing returns to scale and diminishing marginal returns are just two different ways of saying the same thing.

-Marginal product reaches a maximum when labor equals:

Suppose a production function has only one input, labor. What can you tell about the slope of the production function, assuming output is on the y-axis and labor is on the x-axis, if production exhibits constant marginal returns to labor?

-*Diminishing marginal returns set in at labor equals:

For the production function Q=aK+bLQ = a K + b LQ=aK+bL , where the variables are graphed as usual, the equation for a typical isoquant is K=Q2LK = \frac { Q ^ { 2 } } { L }K=LQ2​ .

Technically inefficient points are points that are never observed in practice.

When the marginal product of labor is falling, the average product of labor is falling.

Increasing marginal returns occur when the total product function is:

An isoquant represents:

=0 =1 =2 =3 =4 =0 0 0 0 0 0 =1 0 1 2 3 4 =2 0 8 16 24 32 =3 0 27 54 81 108 =4 0 64 128 192 256 -Based on the table above, holding capital constant at 3 units, the marginal productivity of the second laborer is

Let a firm's production function be Q=100(aL+bK)Q = 100 ( a L + b K )Q=100(aL+bK) . The production function then becomes Q=500(aL+bK)Q = 500 ( a L + b K )Q=500(aL+bK) . Labor-saving technological progress has occurred.

For a simple graph of a production function with Q on the y-axis and L on the x-axis, the average product of labor is equal to the slope of the ray from the origin to the apex of the production function for all values of L.

Consider comparing the relationship between marginal and average product. The relationship between MPL and APL is not the same as the relationship between the marginal of anything and the average of anything.

The MRTSL,K=M R T S _ { L , K } =MRTSL,K​= ____

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets: Applications

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

For the production function $Q = a K + b L$ , where the variables are graphed as usual, the equation for a typical isoquant is $K = \frac { Q ^ { 2 } } { L }$ .

Let a firm's production function be $Q = 100 ( a L + b K )$ . The production function then becomes $Q = 500 ( a L + b K )$ . Labor-saving technological progress has occurred.

The $M R T S _ { L , K } =$ ____