Question : 14.6   Integrative Questions   1) The table above shows A) a : 1241170

 

14.6   Integrative Questions

 

 

 

1) The table above shows

A) a total product schedule.

B) the market for labor.

C) a production possibility frontier.

D) a supply schedule.

E) a demand for labor schedule.

 

2) Which of the following variables do you need to know to calculate marginal cost?

i.change in total cost

ii.marginal product of labor

iii.change in quantity of labor used

iv.change in output

A) i and ii

B) i and iv

C) ii and iv

D) i, iii, and iv

E) Only ii

3) The average product curve

A) initially falls then rises.

B) rises as average variable cost increases.

C) initially rises and then falls.

D) shows how productivity changes as output changes.

E) intersects the marginal cost curve when the average product curve is at its maximum.

 

4) Which of the following contributes to increasing marginal returns?

A) decreasing implicit costs

B) increasing explicit costs

C) specialization of labor

D) Both answers A and B are correct.

E) Both answers A and C are correct.

 

5) The law of decreasing returns applies to

A) the long-run average cost curve.

B) average total cost.

C) diseconomies of scale.

D) changes in a variable input with a given quantity of fixed inputs.

E) changes in a fixed input with a given quantity of variable inputs.

6) Once production has reached the maximum average product of labor, if production increases then

A) average fixed cost rises.

B) total costs decrease.

C) total product decreases.

D) decreasing marginal returns occur.

E) the plant size must be increased.

 

7) As output increases, average total cost decreases

A) constantly.

B) as the average product of labor decreases.

C) initially and then starts to increase.

D) in the long run and the short run.

E) as long as average fixed cost decreases.

 

8) Marginal cost

A) is the difference between total cost and total fixed cost.

B) increases as the marginal product of labor increases.

C) decreases as the average product of labor increases.

D) is the change in total cost arising from a one-unit increase in output.

E) equals the change in variable cost divided by the change in fixed cost when output increases by one unit.

9) Which of the following curves are U-shaped?

i.average variable cost curve

ii.average fixed cost curve

iii.average total cost curve

A) i and ii

B) i and iii

C) ii and iii

D) i, ii, and iii

E) only ii

 

10) The marginal cost curve intersects the ________ curves at their ________ points.

A) average total cost and average fixed cost; minimum

B) average product and marginal product; maximum

C) average variable cost and total variable cost; maximum

D) average total cost and average variable cost; minimum

E) average product and marginal product; minimum

 

11) If the average product of labor curve is rising,

i.the average variable cost curve is falling.

ii.the marginal cost curve is definitely falling.

iii.the marginal product curve has reached its maximum.

A) i and iii

B) i only

C) ii and iii

D) i, ii, and iii

E) ii only