Econ qui2

# Econ qui2 - Exam Name_ MULTIPLE CHOICE. Choose the one...

This preview shows pages 1–2. Sign up to view the full content.

Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is \$25 and the cost of the capital is \$100. Labour per unit of time Total Output 0 0 1 25 2 75 3 175 4 250 5 305 TABLE 7 - 4 1) Refer to Table 7 - 4. The average total cost for 250 units of output is approximately 1) A) 33 cents. B) 40 cents. C) 63 cents. D) 80 cents. E) \$1.00. 2) If Michelle used \$1000 from her savings account, which was paying 6 percent interest annually, to invest in her brother's new sporting - goods store, the opportunity cost of her investment on an annual basis would be 2) A) the dividend paid to her by her brother. B) \$1000. C) her share of the store's profits. D) \$1060. E) \$60. The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is \$25 and the cost of the capital is \$100. Labour per unit of time Total Output 0 0 1 25 2 75 3 175 4 250 5 305 TABLE 7 - 4 3) Refer to Table 7 - 4. The total cost of producing 175 units of output is 3) A) \$75. B) \$100. C) \$150. D) \$175. E) \$350. 1

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 11/23/2010 for the course ECON 208 taught by Professor Dickenson during the Fall '07 term at McGill.

### Page1 / 6

Econ qui2 - Exam Name_ MULTIPLE CHOICE. Choose the one...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online