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Unformatted text preview: ch6 Student: _______________________________________________________________________________________ 1. Which of the following are factors of production? A. Output in a production function. B. Productivity. C. Land, labor, capital, and entrepreneurship. D. Implicit and explicit costs. 2. Which of the following is a factor of production for the Little Biscuit Bread Company? A. Flour. B. Bread. C. Productivity. D. Money. 3. Which of the following are factors of production for Claudia's Taco Stand? A. Explicit costs and money. B. Average total cost and productivity. C. Corn tortillas and labor. D. Entrepreneurship and profit. 4. A production function: A. Shows the cost of producing any level of output. B. Is a technological relationship between factors of production and output. C. Expresses the least-cost method of producing a given level of output. D. Expresses our ability to produce various combinations of goods, using all of our resources. 5. A production function matches a given combination of factor inputs with the: A. Lowest average cost of producing the output. B. Maximum-cost method for combining the inputs. C. Least cost of producing output. D. Maximum output that can be technologically produced from the inputs. 6. A production function shows the: A. Minimum amount of output that can be obtained from alternative combinations of inputs. B. Maximum quantity of inputs required to produce a given quantity of output. C. Maximum output that can be produced with varying combinations of factor inputs. D. Output capacity of the entire economy. 7. Which of the following statements is true about the production function? A. It represents minimal technical efficiency assuming full employment of resources. B. It expresses the maximum output attainable from various combinations of factor inputs. C. It is a model of the output capacity for an economy assuming prices are stable. D. It represents various equilibriums for different price levels. 8. Suppose we can describe the production function for the Quality Lawnmower Co. with the equation, TP = 6L (where L = the number of workers). Based on this information, which of the following statements is true? A. The Quality Lawnmower Co. will never experience economies of scale. B. The law of diminishing returns does not apply at the Quality Lawnmower Co. C. Diminishing returns begin after the sixth worker. D. The marginal physical product curve becomes negative at six workers. 9. Suppose we can describe the production function for Mary's Muffin Company with the equation, TP = 9L (where L = the number of workers). Based on this information, which of the following statements is true? A. The law of diminishing returns does not apply at Mary's Muffin Company....
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This note was uploaded on 09/18/2011 for the course WR 227 taught by Professor U.nknown during the Spring '10 term at Portland State.
- Spring '10