3033smplQuiz1

3033smplQuiz1 - ECO 3033 Sample Items QUIZ 1 True/False(On...

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ECO 3033, Sample Items, QUIZ 1 True/False (On a Scantron sheet, these would be A = True, B = False.) __ B __ 1. The derivative of total product gives us average product. __ A __ 2. A production function is a mathematical statement of the way that the quantity of output of a particular product depends on the use of specific inputs, or resources. __ A __ 3. The expansion path of a firm is a long-run concept that shows the least cost input combinations for various output levels when the firm has two different inputs. __ B _ 4. The marginal product of a variable input is the rate of change of average product with respect to the input, all other things kept fixed. __ B __ 5. Although average product can be a negative amount, marginal product cannot be negative. __ B __ 6. We can be sure we have found a least cost combination of inputs if for that combination the ratio of the sum of the marginal products to the sum of the input prices is 1.0. __ A __ 7. An isoquant is a contour line that shows the combinations of two inputs that will produce a single given level of output. __ A __ 8. In the long run, all of a firm's inputs are variable __ B __ 9. When marginal product is negative, total product must be negative. __ B __ 10. A rightward shift in a demand curve represents a decrease in demand __ B __ 11. A decrease in the price of a good will cause a leftward shift in the demand curve for that good if it is a normal

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This note was uploaded on 04/06/2012 for the course ECO 3033 taught by Professor Truett during the Spring '12 term at University of Texas.

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3033smplQuiz1 - ECO 3033 Sample Items QUIZ 1 True/False(On...

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