101ch10-12-1

101ch10-12-1 - Exam Name_ MULTIPLE CHOICE. Choose the one...

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1 Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Firm A can produce a unit of output with 10 hours of labour and 5 units of material. Firm B can produce a unit of output with 5 hours of labour and 10 units of material. Firm C can produce a unit of output with 10 hours of labour and 10 units of material. If the prices of labour and material are $10 and $5, respectively which firm(s) is (are) technologically efficient? 1) _______ A) A B) B C) C D) A and B E) A and C Table 9.2 Three methods of making one medical hologram 2) In Table 9.2, which method(s) of making a medical hologram is/are technologically efficient? 2) _______ A) 1 only. B) 2 only. C) 3 only. D) all of the above E) 1 and 3 only 3) Gerald is a freelance writer who could work for a newspaper at $25,000 a year but instead runs his own business making a revenue of $40,000 a year. His only business expenses are $1,000 for writing materials and $12,000 for rent. What is Gerald's economic profit for working as a freelance writer? 3) _______ A) $25,000 B) $15,000 C) $27,000 D) $28,000 E) $2,000 4) The rate of interest is 10 percent per year. You invest $50,000 of your own money in a business and earn accounting profit of $20,000 after one year. Ceteris paribus , what is your economic profit? 4) _______ A) $2,000 B) $20,000 C) - $15,000 D) $15,000 E) $5,000
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2 5) Marginal product is the change in total product caused by a 5) _______ A) one - unit increase in the quantity of fixed input employed, holding the quantity of the variable input constant. B) 1 percent change in the amount of variable input used. C) one - unit increase in both the quantity of variable and fixed inputs. D) change in the cost of the variable input. E) one - unit increase in the variable input, holding the quantity of fixed input constant. Table 10.2 6) Refer to Table 10.2 which represents Swanky's total product curve. The average product that would be produced if the firm employed four workers is 6) _______ A) 2. B) 8. C) 3.75. D) 12. E) 15. 7) Diminishing marginal returns refers to a situation where the ________ of the last worker hired falls short of the ________ of the previous worker. 7) _______ A) marginal cost; marginal cost B) marginal product; average product C) marginal product; marginal product D) average product; average product E) average cost; average cost Table 10.4 8) Refer to Table 10.4. A field of ripe corn is waiting to be harvested. Labour is the only variable input, and the total product (in hectolitres) of the various numbers of labourers is given. Diminishing marginal returns begin when you add which labourer? 8) _______
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This note was uploaded on 12/31/2011 for the course ECON 101 taught by Professor Vanderwaal during the Fall '08 term at Waterloo.

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101ch10-12-1 - Exam Name_ MULTIPLE CHOICE. Choose the one...

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