quiz 5

quiz 5 - If, as a person consumes more and more of a good,...

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If, as a person consumes more and more of a good, each additional unit adds less satisfaction than the previous unit consumed, we are seeing the working of the law of: Possible Answers A. demand. B. increasing opportunity cost. C. diminishing marginal utility. D. supply. 2. Which of the following is an implicit cost of production? Possible Answers A. Rent that could have been earned on a building owned and used by the firm. B. The utility bill paid to water, electricity, and natural gas companies. C. Interest paid on a loan to a bank. D. Wages paid to labor plus the cost of carrying benefits for workers. 3. Total utility typically increases at a decreasing rate as a consumer consumes more of one good or service, so marginal utility must: Possible Answers A. decrease. B. remains constant. C. increase also. D. be negative. 4. The short run marginal product of labor increasing at first and then falling is an example of the law of: Possible Answers
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A. diminishing returns. B. diminishing marginal utility. C. demand. D. supply. 5. The relationship between different amounts of inputs and the resulting level of output is a: Possible Answers A. total cost schedule. B. production function. C. production quota. D. production possibilities frontier. 6. As a consumer consumes more and more of a good or service in a particular time period, eventually marginal utility: Possible Answers A. fluctuates. B. declines. C. rises. D. is constant. 7. A factor of production that is not fixed in the short run is: Possible Answers A. physical capital. B. labor. C. technology. D. land. 8. Diseconomies of scale can arise due to: Possible Answers
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A. management difficulties. B. less skilled workers being hired as firms expand. C. inefficient production. D. diminishing returns. 9. Fixed costs per unit of output in the short run: Possible Answers A. remain constant. B. graphs as a U-shaped curve. C. will rise at a fixed rate as more is produced. D. falls as long as output is increased. 10. Implicit costs of production are also called: Possible Answers A. overhead. B. opportunity costs. C. direct costs. D. variable costs. 11. Indifference curves intersect: Possible Answers A. never. B. the consumer optimum. C. where the marginal rate of substitution for each indifference curve is equal. D. at equilibrium. 12. When the price of a good falls and you buy more of it because it is relatively less expensive, this is called: Possible Answers
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A. the deadweight loss effect. B.
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quiz 5 - If, as a person consumes more and more of a good,...

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