chapter004.DOC - Chapter 4 Multiple Choice 4.1 A key assumption about the way firms behave is that they a minimize costs b maximize market share c

chapter004.DOC - Chapter 4 Multiple Choice 4.1 A key...

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Chapter 4 Multiple Choice 4.1 A key assumption about the way firms behave is that they a) minimize costs. b) maximize market share. c) maximize profit. d) maximize revenue. 4.2 A graph that maps output against the input required to make that output is called a/an a) average cost function. b) a cost function. c) a production function. d) a marginal cost function. 4.3 A graph which maps the total costs of production against the amount made is called the a) average cost function. b) a cost function. c) a production function. d) a marginal cost function. 4.4 If an input must be increased for output to increase it is called a a) fixed input. b) changeable input. c) variable input. d) unchangeable input. 4.5 If the level of an input can not be increased because there is insufficient time to put them in place, they are called a) fixed input. b) changeable input. c) variable input. d) unchangeable input. 4.6 When workers subdivide the tasks of a job in such a way so as to become more efficient economists refer to this as the benefits of a) the division of labor. b) the division of tasks. c) the separation of powers. d) the degrees of freedom.
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4.7 Referring to the figure above, the increase in output from point A to B is less than the increase in output from point B to C because a) more workers always produce more. b) better workers are usually hired after the earlier ones . c) a small number of workers can not take as good advantage of the division of labor as a larger number. d) eventually workers are up against the fact that there are fixed inputs and more workers do not add as much. 4.8 Referring to the figure above, the increase in output from point B to C is greater than the increase in output from point C to D because a) more workers always produce more. b) better workers are usually hired after the earlier ones. c) a small number of workers can not take as good advantage of the division of labor as a larger number. d) eventually workers are up against the fact that there are fixed inputs and more workers do not add as much. 4.9 Referring to the figure above, the increase in output from point A to B and from point B to C is happens because a) more workers always produce more. Output Production Function A B C D Workers 2
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b) better workers are usually hired after the earlier ones.
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  • Spring '14
  • BassamY.Yousif
  • Economics

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