Name
Exam 2
1.
Which of the following will not cause a demand curve for snowboard gloves to
shift
a.
A doubling of the price of snowboard gloves
b.
A doubling of the price of snowboard goggles
c.
A doubling of income
d.
A change in preferences
e.
A doubling of the price of snowboard gloves and snowboard goggles
2.
Suppose every car requires exactly one engine (E) and four tires (T).
The
production function for this process is:
a.
Q = E + 4T
b.
Q = 4E + T
c.
Q = Min[ E, .25T]
d.
Q = Min[ 4E, T ]
3.
The average product of labor reaches its maximum :
a.
At the point of inflection of the total product curve
b.
Where the slope of the total product curve is steepest
c.
Where the slope of the total product curve is zero
d.
Where marginal and average product are equal
4.
A firm whose production function displays increasing returns to scale will have a
total cost curve that is:
a.
A straight line through the origin
b.
A curve with a positive and continually decreasing slope
c.
A curve with a positive and continually increasing slope
d.
A curve with a negative and continually decreasing slope
5.
Suppose at the firm’s current long run combination of capital and labor that
MP
K
= 15, MP
L
= 10, r = 8, and w = 3.
The firm
a.
Is currently minimizing total cost in the long run
b.
Could lower costs by increasing th usage of capital and decreasing the
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 Fall '07
 LOH,JOYCE
 Economics, total product curve, Patty

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