Question 1

The rate at which one input can be exchanged for another input without altering the level of output is called the

Accepted Answer

A)  marginal product curve. 
B)  average product curve. 
C)  marginal rate of technical substitution. 
D)  law of diminishing marginal productivity. 
A)  marginal product curve. 
B)  average product curve. 
C)  marginal rate of technical substitution. 
D)  law of diminishing marginal productivity. C

Question 2

A type of production function that includes linear production functions,fixed-proportions production functions,and Cobb-Douglas production functions as special cases is

Accepted Answer

A)  Cobb-Douglas production function 
B)  Constant elasticity of substitution (CES) production function 
C)  Fixed proportions production functions 
D)  Linear production functions 
A)  Cobb-Douglas production function 
B)  Constant elasticity of substitution (CES) production function 
C)  Fixed proportions production functions 
D)  Linear production functions B

Question 3

The production set represents

Accepted Answer

A)  the set of all technically feasible combinations of inputs and outputs. 
B)  the technically efficient combinations of inputs and outputs. 
C)  the maximum output the firm can produce from a given level of inputs. 
D)  the minimum amounts of inputs necessary to produce a given level of output. 
A)  the set of all technically feasible combinations of inputs and outputs. 
B)  the technically efficient combinations of inputs and outputs. 
C)  the maximum output the firm can produce from a given level of inputs. 
D)  the minimum amounts of inputs necessary to produce a given level of output. A

Question 4

A labor requirements function represents

Accepted Answer

A)  the set of feasible levels of labor that will produce a given level of output. 
B)  the various recipes for producing a given level of output. 
C)  the minimum amount of labor necessary to produce a given level of output. 
D)  the set of all feasible combinations of labor and outputs. 
A)  the set of feasible levels of labor that will produce a given level of output. 
B)  the various recipes for producing a given level of output. 
C)  the minimum amount of labor necessary to produce a given level of output. 
D)  the set of all feasible combinations of labor and outputs.

Question 5

**Reference: Use the following table for questions 36-38  
-*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 6

A production manager notices that when she triples all of her inputs simultaneously,her output doubles.The production manager determines that for this range of output,the production function exhibits

Accepted Answer

A)  increasing returns to scale. 
B)  constant returns to scale. 
C)  decreasing returns to scale. 
D)  undefined returns to scale. 
A)  increasing returns to scale. 
B)  constant returns to scale. 
C)  decreasing returns to scale. 
D)  undefined returns to scale.

Question 7

Returns to scale refers to

Accepted Answer

A)  the increase in output that accompanies an increase in one input, all other inputs held constant. 
B)  a change in a production process that enables a firm to achieve more output from a given combination of inputs. 
C)  the number of units of increase in output that can be obtained from an increase in one unit of input. 
D)  the percentage by which output will increase when all inputs are increased by a given percentage. 
A)  the increase in output that accompanies an increase in one input, all other inputs held constant. 
B)  a change in a production process that enables a firm to achieve more output from a given combination of inputs. 
C)  the number of units of increase in output that can be obtained from an increase in one unit of input. 
D)  the percentage by which output will increase when all inputs are increased by a given percentage.

Question 8

Let a firm's production function be   The production function then becomes   Which of the following statements is true?

Accepted Answer

A)  Neutral technological progress has occurred. 
B)  Labor-saving technological progress has occurred 
C)  Capital-saving technological progress has occurred. 
D)  Economies of scale have increased. 
A)  Neutral technological progress has occurred. 
B)  Labor-saving technological progress has occurred 
C)  Capital-saving technological progress has occurred. 
D)  Economies of scale have increased.

Question 9

When a production function can be expressed as   ,the relationship between capital and labor in the production function is that

Accepted Answer

A)  capital and labor are perfect substitutes, and the isoquants are linear. 
B)  capital and labor must be combined in fixed proportions, and the isoquants are L-shaped. 
C)  capital and labor are substitutable, and the isoquants are convex to the origin. 
D)  capital and labor are perfect substitutes, and the isoquants are L-shaped. 
A)  capital and labor are perfect substitutes, and the isoquants are linear. 
B)  capital and labor must be combined in fixed proportions, and the isoquants are L-shaped. 
C)  capital and labor are substitutable, and the isoquants are convex to the origin. 
D)  capital and labor are perfect substitutes, and the isoquants are L-shaped.

Question 10

The slope of the isoquant can be expressed as

Accepted Answer

A)  the ratio of the input prices. 
B)  the ratio of the inputs. 
C)  the ratio of the marginal productivities of the inputs. 
D)  the sum of the marginal productivities of the inputs. 
A)  the ratio of the input prices. 
B)  the ratio of the inputs. 
C)  the ratio of the marginal productivities of the inputs. 
D)  the sum of the marginal productivities of the inputs.

Question 11

Consider the production function   .The   is

Accepted Answer

A)  2.00 
B)  1.50 
C)  1.00 
D)  0.50 
A)  2.00 
B)  1.50 
C)  1.00 
D)  0.50

Question 12

A measure of how quickly the marginal rate of technical substitution of labor for capital changes as we move along an isoquant is the

Accepted Answer

A)  capital-labor ratio 
B)  elasticity of substitution 
C)  input substitution possibility frontier 
D)  rate of technological progress 
A)  capital-labor ratio 
B)  elasticity of substitution 
C)  input substitution possibility frontier 
D)  rate of technological progress

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

The marginal rate of technical substitution of labor for capital is defined as

Accepted Answer

A)  The rate at which the quantity of capital can be decreased for every one unit increase in the quantity of labor, holding the quantity of output constant 
B)  The rate at which the quantity of capital must be increased for every one unit decrease in the quantity of labor, holding the cost of output constant. 
C)  The rate at which the cost of labor and capital increases as output rises. 
D)  The rate at which output rises as capital increases, holding labor constant. 
A)  The rate at which the quantity of capital can be decreased for every one unit increase in the quantity of labor, holding the quantity of output constant 
B)  The rate at which the quantity of capital must be increased for every one unit decrease in the quantity of labor, holding the cost of output constant. 
C)  The rate at which the cost of labor and capital increases as output rises. 
D)  The rate at which output rises as capital increases, holding labor constant.

Question 15

Compare and match the following

Accepted Answer

The answer of Compare and match the following  ...

Question 16

Consider the CES production function   .This production function exhibits

Accepted Answer

A)  decreasing returns to scale. 
B)  constant returns to scale. 
C)  increasing returns to scale. 
D)  either decreasing or constant returns to scale, but more information is needed to determine which one. 
A)  decreasing returns to scale. 
B)  constant returns to scale. 
C)  increasing returns to scale. 
D)  either decreasing or constant returns to scale, but more information is needed to determine which one.

Question 17

A production function of the form   is a(n)

Accepted Answer

A)  isoquant function 
B)  Cobb-Douglas production function 
C)  fixed-proportions function 
D)  perfect compliments function 
A)  isoquant function 
B)  Cobb-Douglas production function 
C)  fixed-proportions function 
D)  perfect compliments function

Question 18

The

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 19

Consider the production function   where   is some constant.This production function exhibits

Accepted Answer

A)  decreasing returns to scale. 
B)  constant returns to scale. 
C)  increasing returns to scale. 
D)  either decreasing or constant returns to scale, but more information is needed to determine which one. 
A)  decreasing returns to scale. 
B)  constant returns to scale. 
C)  increasing returns to scale. 
D)  either decreasing or constant returns to scale, but more information is needed to determine which one.

Question 20

**Reference: Use the following graph to answer questions 19 - 22.  
-*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

The rate at which one input can be exchanged for another input without altering the level of output is called the

A type of production function that includes linear production functions,fixed-proportions production functions,and Cobb-Douglas production functions as special cases is

The production set represents

A labor requirements function represents

**Reference: Use the following table for questions 36-38 -*Holding capital constant at 3 units,the marginal productivity of the second laborer is

A production manager notices that when she triples all of her inputs simultaneously,her output doubles.The production manager determines that for this range of output,the production function exhibits

Returns to scale refers to

Let a firm's production function be The production function then becomes Which of the following statements is true?

When a production function can be expressed as ,the relationship between capital and labor in the production function is that

The slope of the isoquant can be expressed as

Consider the production function .The is

A measure of how quickly the marginal rate of technical substitution of labor for capital changes as we move along an isoquant is the

Increasing marginal returns occur when the total product function is

The marginal rate of technical substitution of labor for capital is defined as

Compare and match the following

Consider the CES production function .This production function exhibits

A production function of the form is a(n)

The

Consider the production function where is some constant.This production function exhibits

**Reference: Use the following graph to answer questions 19 - 22. -*Average product reaches a maximum when labor equals

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

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

The rate at which one input can be exchanged for another input without altering the level of output is called the

A type of production function that includes linear production functions,fixed-proportions production functions,and Cobb-Douglas production functions as special cases is

The production set represents

A labor requirements function represents

**Reference: Use the following table for questions 36-38 -*Holding capital constant at 3 units,the marginal productivity of the second laborer is

A production manager notices that when she triples all of her inputs simultaneously,her output doubles.The production manager determines that for this range of output,the production function exhibits

Returns to scale refers to

Let a firm's production function be The production function then becomes Which of the following statements is true?

When a production function can be expressed as ,the relationship between capital and labor in the production function is that

The slope of the isoquant can be expressed as

Consider the production function .The is

A measure of how quickly the marginal rate of technical substitution of labor for capital changes as we move along an isoquant is the

Increasing marginal returns occur when the total product function is

The marginal rate of technical substitution of labor for capital is defined as

Compare and match the following

Consider the CES production function .This production function exhibits

A production function of the form is a(n)

The

Consider the production function where is some constant.This production function exhibits

**Reference: Use the following graph to answer questions 19 - 22. -*Average product reaches a maximum when labor equals

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

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