Question 1

The marginal physical product of labor is

Accepted Answer

A)  the slope of the total output curve at the relevant point.
B)  the negative of the slope of the total output curve at the relevant point.
C)  the slope of the line connecting the origin with the relevant point on the total output curve.
D)  the negative of the slope of the line connecting the origin with the relevant point on the total output curve.E) B) and D)
F) All of the above

Question 2

Suppose electricity (E) can be produced with coal (C) or gas (G) to operate steam turbines (T) .Suppose gas is more efficiently burned than coal but that they are otherwise perfect substitutes.E = min((G + .5C) ,T) . The isoquants between gas and coal will be

Accepted Answer

A)  hyperbolas
B)  quarter circles
C)  straight linesD) None of the above
E) All of the above

Question 3

A firm is defined as

Accepted Answer

A)  a president,some vice presidents,and some employees.
B)  any organization that wants to make a profit.
C)  any accumulation of productive assets.
D)  any organization that turns inputs into outputs.E) B) and C)
F) None of the above

Question 4

The marginal rate of technical substitution of labor for capital measures

Accepted Answer

A)  the amount by which capital input can be reduced while holding quantity produced constant when one more unit of labor is used.
B)  the amount by which labor input can be reduced while holding quantity produced constant when one more unit of capital is used.
C)  the ratio of total labor to total capital.
D)  the ratio of total capital to total labor.E) A) and B)
F) None of the above

Question 5

A firm's rate of technical substitution is represented graphically by

Accepted Answer

A)  the slope of the line connecting the origin with the relevant point on the isoquant.
B)  the negative of the slope of the line connecting the origin with the relevant point on the isoquant.
C)  the slope of the isoquant at the relevant point.
D)  the negative of the slope of the isoquant at the relevant point.E) A) and B)
F) C) and D)

Question 6

Graphically,the average productivity of labor would be illustrated by the slope of the marginal productivity curve at the relevant point.

Accepted Answer

A)  the slope of the total product curve at the relevant point.
B)  the slope of the marginal productivity curve at the relevant point.
C)  the negative of the slope of the marginal productivity curve at the relevant point.
D)  the slope of the chord connecting the origin with the relevant point on the total output curve.E) None of the above
F) B) and C)

Question 7

If Q = K1/3L2 the MPK is

Accepted Answer

A)  constant
B)  diminishing
C)  increasingD) B) and C)
E) None of the above

Question 8

If Q = K1/3L2 the MPL is

Accepted Answer

A)  constant
B)  diminishing
C)  increasingD) B) and C)
E) A) and B)

Question 9

A rise in the average productivity of labor

Accepted Answer

A)  always reflects technical progress.
B)  reflects technical progress if other input usage hasn't changed.
C)  reflects technical progress only if labor input hasn't changed.
D)  reflects technical progress only if the quantity of output is increased.E) B) and D)
F) A) and B) B

Question 10

A technical innovation in the production of automobiles by Ford Motor Company's for 1 million cars per year would necessarily

Accepted Answer

A)  shift the "1 million car" isoquant away from the origin.
B)  shift the "1 million car" isoquant toward the origin.
C)  cause 1 million cars to be produced with more capital and less labor.
D)  cause 1 million cars to be produced with more labor and less capital.E) A) and C)
F) None of the above

Question 11

2 and the shape shown above,B is A) positive. B) zero. C) negative and less than C. D) negative and greater than C." class="answers-bank-image d-inline" rel="preload" > With a quadratic production with fixed capital Q = A + BL + CL2 and the shape shown above,B is

Accepted Answer

A)  positive.
B)  zero.
C)  negative and less than C.
D)  negative and greater than C.E) B) and D)
F) B) and C)

Question 12

The marginal physical product of labor is defined as

Accepted Answer

A)  a firm's total output divided by total labor input.
B)  the extra output produced by employing one more unit of labor while allowing other inputs to vary.
C)  the extra output produced by employing one more unit of labor while holding other inputs constant.
D)  the extra output produced by employing one more unit of capital while holding labor input constant.E) B) and D)
F) A) and B)

Question 13

If Q = K1/2L1/2 the MPL is

Accepted Answer

A)  constant
B)  increasing
C)  diminishingD) B) and C)
E) All of the above

Question 14

2 and the shape shown above,A is A) positive and greater than B. B) positive and less than B. C) zero. D) negative." class="answers-bank-image d-inline" rel="preload" > With a quadratic production with fixed capital Q = A + BL + CL2 and the shape shown above,A is

Accepted Answer

A)  positive and greater than B.
B)  positive and less than B.
C)  zero.
D)  negative.E) B) and D)
F) C) and D) C

Question 15

If Q = K2L2 the MPL is

Accepted Answer

A)  constant
B)  diminishing
C)  increasingD) B) and C)
E) All of the above

Question 16

If production is given by Q = KL,doubling both inputs

Accepted Answer

A)  more than doubles output.
B)  exactly doubles output.
C)  increases output but does not double it.
D)  leaves output unchanged.E) None of the above
F) All of the above

Question 17

The production function  q=KLq = \sqrt { K L }q=KL​

Accepted Answer

A)  exhibits constant returns to scale and constant marginal productivities for K and L.
B)  exhibits diminishing returns to scale and diminishing marginal productivities for K and L.
C)  exhibits constant returns to scale and diminishing marginal productivities for K and L.
D)  exhibits diminishing returns to scale and constant marginal productivities for K and L.. E) A) and D)
F) C) and D) C

Question 18

2 + DL3 and a shape shown above,C is A) positive. B) zero. C) negative and less than D. D) negative and greater than D." class="answers-bank-image d-inline" rel="preload" > 
With a cubic production with fixed capital Q = A + BL + CL2 + DL3 and a shape shown above,C is

Accepted Answer

A)  positive.
B)  zero.
C)  negative and less than D.
D)  negative and greater than D.E) All of the above
F) B) and C)

Question 19

If,as a result of doubling all its inputs,a firm can more than double its output,the firm's production function exhibits

Accepted Answer

A)  constant returns to scale.
B)  increasing returns to scale.
C)  decreasing returns to scale.
D)  increasing marginal productivity to at least one input.E) None of the above
F) A) and D)

Question 20

A fixed-proportion production function has isoquants that are

Accepted Answer

A)  almost flat (i.e.,the isoquants are almost straight lines) .
B)  L-shaped.
C)  normally shaped (rectangular hyperbolas) .
D)  None of the above.E) All of the above
F) A) and B)

Exam 6: Production

The marginal physical product of labor is

Correct AnswerverifiedShow Answer

Suppose electricity (E) can be produced with coal (C) or gas (G) to operate steam turbines (T) .Suppose gas is more efficiently burned than coal but that they are otherwise perfect substitutes.E = min((G + .5C) ,T) . The isoquants between gas and coal will be

Correct AnswerverifiedShow Answer

A firm is defined as

Correct AnswerverifiedShow Answer

The marginal rate of technical substitution of labor for capital measures

Correct AnswerverifiedShow Answer

A firm's rate of technical substitution is represented graphically by

Correct AnswerverifiedShow Answer

Graphically,the average productivity of labor would be illustrated by the slope of the marginal productivity curve at the relevant point.

Correct AnswerverifiedShow Answer

If Q = K1/3L2 the MPK is

Correct AnswerverifiedShow Answer

If Q = K1/3L2 the MPL is

Correct AnswerverifiedShow Answer

A rise in the average productivity of labor

Correct AnswerverifiedB

A technical innovation in the production of automobiles by Ford Motor Company's for 1 million cars per year would necessarily

Correct AnswerverifiedShow Answer

With a quadratic production with fixed capital Q = A + BL + CL2 and the shape shown above,B is

Correct AnswerverifiedShow Answer

The marginal physical product of labor is defined as

Correct AnswerverifiedShow Answer

If Q = K1/2L1/2 the MPL is

Correct AnswerverifiedShow Answer

With a quadratic production with fixed capital Q = A + BL + CL2 and the shape shown above,A is

Correct AnswerverifiedC

If Q = K2L2 the MPL is

Correct AnswerverifiedShow Answer

If production is given by Q = KL,doubling both inputs

Correct AnswerverifiedShow Answer

The production function q=KLq = \sqrt { K L }q=KL​

Correct AnswerverifiedC

With a cubic production with fixed capital Q = A + BL + CL2 + DL3 and a shape shown above,C is

Correct AnswerverifiedShow Answer

If,as a result of doubling all its inputs,a firm can more than double its output,the firm's production function exhibits

Correct AnswerverifiedShow Answer

A fixed-proportion production function has isoquants that are

Correct AnswerverifiedShow Answer

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If Q = K^1/3L² the MP_K is

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If Q = K^1/3L²the MP_L is

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B

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With a quadratic production with fixed capital Q = A + BL + CL² and the shape shown above,B is

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If Q = K^1/2L^1/2 the MP_L is

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With a quadratic production with fixed capital Q = A + BL + CL² and the shape shown above,A is

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C

If Q = K²L² the MP_L is

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The production function $q = \sqrt { K L }$

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C

With a cubic production with fixed capital Q = A + BL + CL² + DL³ and a shape shown above,C is

Correct Answer
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