ECON10A_12

ECON10A_12 - 1 Review 2 Question 1 c 1 B A C c 2 I 1 I 2...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon

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

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

Unformatted text preview: 1/4/2008 1 Review 1/4/2008 2 Question 1 c 1 B A C c 2 I 1 I 2 Initially, the person below is: A. Saver B. Borrower C. Can’t Tell 1/4/2008 3 Question 2 c 1 B A C c 2 I 1 I 2 The figure depicts what happens when r.... A. Rises B. Falls C. Can’t Tell 1/4/2008 4 Question 3 c 1 B A C c 2 I 1 I 2 This interest rate change caused: A. the saver to save more B. the borrower to borrow more C. the borrower to become a saver D. the saver to become a borrower 1/4/2008 5 Question 4: If MP L is falling, then so is AP L A. True B. False C. Can’t tell AP L MP L L 1/4/2008 6 Question 5: A firm’s production function is F(L, K)=LK. It currently uses 6 units of L and 3 of K. Which would give it more additional production: A. 1 unit of labor (L) B. 1 unit of capital (K). 1/4/2008 7 Question 6: A firm’s production function is F(L, K)=LK. It currently uses 6 units of L and 3 of K. If it lost a unit of labor, how much extra capital would it need to be just as productive as it was before? A. ½ B. 2 C. Can’t tell 1/4/2008 8 Isoquants Isoquant: Set of input bundles that yield the same output Analogous to, but not the same as indifference curves! L K L L 1 K 1 K 1/4/2008 9 MRTS – Marginal Rate of Technical Substitution MRTS(L, K) If you took away 1 unit of labor, how much extra capital firm would need to maintain same level of production as before. Note 1: Depends on L and K Note 2: This is the slope of the isoquant at the point L, K ....
View Full Document

{[ snackBarMessage ]}

Page1 / 37

ECON10A_12 - 1 Review 2 Question 1 c 1 B A C c 2 I 1 I 2...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online