Question :
11.The law of diminishing returns means that:
A. The total product production : 1233080
11.The law of diminishing returns means that:
A. The total product production function will eventually increase at a decreasing rate.
B. The marginal product will increase at an increasing rate.
C. Average total costs are rising and then falling as output is increased.
D. Average fixed cost will fall as production increases.
12.The change in total output that results from one additional unit of input is the:
A. Marginal physical product.
B. Average product of the input.
C. Unit cost of the input.
D. Input price.
13.Marginal physical product is:
A. Equal to the average output of a worker.
B. The additional utility a consumer gets from the last unit of a product.
C. The additional output from using one more unit of labor.
D. Equal to the total product of labor.
14.The law of diminishing returns can explain why:
A. Marginal cost eventually increases in the short run as more output is produced.
B. The demand curve is typically downward sloping.
C. The average fixed-cost curve declines as long as output increases.
D. Marginal cost decreases as more output is produced.
15.Ceteris paribus, the law of diminishing returns states that beyond some point the:
A. Return on stocks and bonds diminish as more are purchased.
B. Addition to total utility declines as more units are consumed.
C. Marginal physical product of a variable input declines as more of it is used.
D. Output of any good or service increases as more variable input is used.
16.If more of an input factor is used, while holding other inputs constant, a firm will eventually experience:
A. Diminishing returns.
B. Falling marginal cost.
C. Rising marginal physical product.
D. Rising consumer demand.
17.As more labor is hired in the short run, diminishing returns are observed because:
A. The new workers are lazy.
B. The new workers have less capital and land to work with.
C. All the workers begin to socialize more and work less.
D. The new workers are less skilled.
18.The law of diminishing returns indicates that the marginal physical product of a factor declines as more:
A. Output is produced with the most efficient combination of factors.
B. Of the factor is used, holding output constant.
C. Of the factor is used, holding other inputs constant.
D. Of the good is consumed.
19.Assume a toy company hires an additional worker to assemble toys, and the size of the factory and amount of equipment remain constant. As a result, the level of output increases but by a smaller amount than when the previous additional worker was hired. This is an example of:
A. The law of poor planning.
B. The law of diminishing returns.
C. Say’s Law.
D. The law of substitution.
20.Assume a restaurant hires an additional chef who is as qualified as the current chefs. As a result, the level of output increases but by a smaller amount than when the previous additional chef was hired. Which of the following best explains this occurrence?
A. The chefs are working with a fixed amount of space and equipment and they get in each other’s way.
B. The additional wages cause profit to decrease.
C. The amount of food available for preparation is limited so output decreases.
D. The two chefs do not agree on food preparation and spend too much time arguing.
