Description
Principles of Economics International Edition 15th Edition – Test Bank
Chapter 5—Production, Cost, and Profit
MULTIPLE CHOICE
1.A production function is
|
a. |
a technique for determining the most profitable rate of output |
|
b. |
the relationship between a combination of inputs and a quantity of output |
|
c. |
an important factor in determining the shape of the long-run supply curve |
|
d. |
all of these |
ANS: B PTS: 1
2.The marginal product refers to the impact of which unit of a productive resource?
|
a. |
first |
|
b. |
middle |
|
c. |
last |
|
d. |
average |
ANS: C PTS: 1
3.The addition to total output resulting from using one more unit of a productive resource is the
|
a. |
average product |
|
b. |
marginal input |
|
c. |
total product |
|
d. |
marginal product |
ANS: D PTS: 1
4.As units of input are added to the production process, the marginal product
|
a. |
increases throughout |
|
b. |
at first increases, then eventually decreases |
|
c. |
remains the same |
|
d. |
declines then rises |
ANS: B PTS: 1
5.As units of input are added to the production process, the average product
|
a. |
rises and then declines |
|
b. |
declines and then rises |
|
c. |
remains the same |
|
d. |
is always greater than the marginal product |
ANS: A PTS: 1
6.When marginal product is less than average product,
|
a. |
average product falls |
|
b. |
average product is zero |
|
c. |
average product increases |
|
d. |
average product is unaffected |
ANS: A PTS: 1
7.If you are a sole proprietor of a firm, the value of the wage you could have earned elsewhere is
|
a. |
an explicit cost |
|
b. |
an accounting cost |
|
c. |
an implicit cost |
|
d. |
not a cost |
ANS: C PTS: 1
8.The amount of payment necessary to attract a given productive resource away from its best alternative use is the
|
a. |
resource cost |
|
b. |
opportunity cost |
|
c. |
overhead cost |
|
d. |
variable cost |
ANS: B PTS: 1
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