MT2Fall2008 - Name: _ Class: _ Date: _ MT2Fall2008 Multiple...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: ________________________ Class: ___________________ Date: __________ ID: A 1 MT2Fall2008 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. An isoquant shows the possible combinations of two a. products that yield the same social utility b. products that can be produced after an improvement in technology c. products that can be produced using the constant amount of resources available d. resources that involve an identical total cost e. resources that produce an identical quantity of the product ____ 2. The marginal rate of technical substitution is the rate at which a. one product can be substituted for another without affecting total production cost b. one product can be substituted for another without affecting total expenditure by the buyer c. one product can be substituted for another without affecting total utility d. one input can be substituted for another without affecting total production cost e. one input can be substituted for another without affecting total output Exhibit 7-14 ____ 3. Consider Exhibit 7-14. The rotation from AB to AC reflects a(n) a. increase in the price of labor b. increase in the price of land c. decrease in the price of labor d. decrease in the price of land e. increase in the amount the producer can spend
Background image of page 1

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

View Full DocumentRight Arrow Icon
Name: ________________________ ID: A 2 Exhibit 7-13 ____ 4. From the firm's perspective, point e in Exhibit 7-13 is preferable to which other point? a. Point a because e represents the same output at lower cost. b. Point a because e represents higher output at the same cost. c. Point b because e represents the same output at lower cost. d. Point b because e represents higher output at the same cost. e. Point b because e represents higher output at lower cost. ____ 5. A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his explicit costs? a. $26,000 b. $66,000 c. $78,000 d. $52,000 e. $72,000 ____ 6. Economic profit is defined as a. total revenue minus implicit costs b. total revenue plus explicit costs c. total revenue plus implicit costs d. wages plus interest minus rent e. total revenue minus implicit and explicit costs ____ 7. The short run is a period of time a. equal to or less than six months b. during which all resources may be varied c. during which all resources are fixed d. during which at least one resource is fixed e. during which at least one resource may be varied
Background image of page 2
Name: ________________________ ID: A 3 ____ 8. Marginal product is defined as a. the increase in revenue that occurs when an additional unit of a resource is added b. the increase in output that occurs when all resources are increased by the same proportion c. the increase in output that occurs when an additional unit of a resource is added, holding all other resources constant d. the amount of additional resources needed to increase output by one unit when all resources are increased by the same amount e.
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/15/2011 for the course ECON 2005 taught by Professor Zirkle during the Spring '07 term at Virginia Tech.

Page1 / 16

MT2Fall2008 - Name: _ Class: _ Date: _ MT2Fall2008 Multiple...

This preview shows document pages 1 - 4. Sign up to view the full document.

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