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Unformatted text preview: ch5 Student: ___________________________________________________________________________ 1. The factors of production include: A. Money. B. Profit. C. Land, labor, capital, and entrepreneurship. D. Output in a production function. 2. Which of the following is a factor of production for Cathy's Cookies? A. Productivity B. Flour C. Money D. Cookies 3. Which of the following are factors of production for Terry's Taco Patio? A. Economic costs and money B. Average total cost and entrepreneurship C. Productivity and labor D. Corn tortillas and meat 4. Land, labor, capital and entrepreneurship are called: A. Factors of production. B. Factors of demand. C. Fixed costs. D. Variable costs. 5. Which of the following are factors of production for a typical college? A. Sporting event tickets B. Tuition C. Parking fees D. The library 6. The maximum output that can be produced from a set of inputs is measured by: A. The production function. B. The demand schedule. C. Fixed costs. D. Marginal costs. 7. Which of the following statements concerning the relationship between total product (TP) and marginal physical product (MPP) is not correct? A. TP will continue to rise even though MPP is falling but greater than zero. B. TP is increasing at an increasing rate if MPP is increasing. C. TP will fall if MPP is negative. D. TP will fall if MPP is falling. 8. The limits to the production of any good are reflected in the: A. Law of demand. B. Capacity curve. C. Demand curve. D. Production function. 9. When a firm produces a level of output on the production function: A. Marginal physical product is zero. B. Maximum efficiency is achieved. C. Opportunity cost for resources is at a maximum. D. Profits are maximized. 10. If the first, second, third and forth worker employed by the firm add 15, 21, 12 and 8 units of total product respectively, we can conclude that: A. The marginal product of all four workers is 14. B. The total product of two workers is 42. C. after the second worker marginal product declines. D. adding a forth worker will cause total product to decline. 11. The law of diminishing returns means that: A. The total product production function will eventually increase at a decreasing rate. B. The marginal product will increase at an increasing rate. C. Average total costs are rising and then falling as output is increased. D. Average fixed cost will fall as production increases. 12. The change in total output that results from one additional unit of input is the: A. Marginal physical product. B. Average product of the input. C. Unit cost of the input. D. Input price. 13. Marginal physical product is: A. Equal to the average output of a worker. B. The additional utility a consumer gets from the last unit of a product....
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- Fall '11