test 4
Question 1
0 out of 4 points
A short-run production function assumes that
Selected Answer:
the level of output is fixed.
Correct Answer:
at least one input is a fixed input.
Question 2
4 out of 4 points
Refer to the following table: Amount of total output produced from various combinations of labor and capital.
Units of Capital
1
2
3 Units of Labor
1
2
3
4
5
6
80
180
270
340
390
410
100
220
330
420
490
530
120
260
390
500
590
650
If capital is fixed at two units, what is the marginal product of the fourth unit of labor?
Selected Answer:
none of the above
Correct Answer:
none of the above
Question 3
4 out of 4 points
Refer to the following table: Amount of total output produced from various combinations of labor and capital.
Units of Capital
1
2
3 Units of Labor
1
2
3
4
5
6
80
180
270
340
390
410
100
220
330
420
490
530
120
260
390
500
590
650
If labor is fixed at three units, how much does the third unit of capital add to total output?
Selected Answer:
60
Correct Answer:
60
Question 4
4 out of 4 points
If average product is increasing, then marginal product
Selected Answer:
must be greater than average product.
Correct Answer:
must be greater than average product.
Question 5
4 out of 4 points
Suppose that you run a house-painting company and currently have 2 workers painting a total of 4 houses per month. If you hire a third worker, 6 houses can be painted per month. If you hire a fourth worker, 9 houses can be painted, and a fifth and sixth worker will increase the number of houses painted to 13 and 15, respectively. Diminishing returns
Selected Answer:
set in when the sixth worker is hired.
Correct Answer:
set in when the sixth worker is hired.
Question 6
0 out of 4 points
The marginal product of labor
Selected Answer:
both a and b
Correct Answer:
both b and c
Question 7
4 out of 4 points
Refer to the
0 out of 4 points
A short-run production function assumes that
Selected Answer:
the level of output is fixed.
Correct Answer:
at least one input is a fixed input.
Question 2
4 out of 4 points
Refer to the following table: Amount of total output produced from various combinations of labor and capital.
Units of Capital
1
2
3 Units of Labor
1
2
3
4
5
6
80
180
270
340
390
410
100
220
330
420
490
530
120
260
390
500
590
650
If capital is fixed at two units, what is the marginal product of the fourth unit of labor?
Selected Answer:
none of the above
Correct Answer:
none of the above
Question 3
4 out of 4 points
Refer to the following table: Amount of total output produced from various combinations of labor and capital.
Units of Capital
1
2
3 Units of Labor
1
2
3
4
5
6
80
180
270
340
390
410
100
220
330
420
490
530
120
260
390
500
590
650
If labor is fixed at three units, how much does the third unit of capital add to total output?
Selected Answer:
60
Correct Answer:
60
Question 4
4 out of 4 points
If average product is increasing, then marginal product
Selected Answer:
must be greater than average product.
Correct Answer:
must be greater than average product.
Question 5
4 out of 4 points
Suppose that you run a house-painting company and currently have 2 workers painting a total of 4 houses per month. If you hire a third worker, 6 houses can be painted per month. If you hire a fourth worker, 9 houses can be painted, and a fifth and sixth worker will increase the number of houses painted to 13 and 15, respectively. Diminishing returns
Selected Answer:
set in when the sixth worker is hired.
Correct Answer:
set in when the sixth worker is hired.
Question 6
0 out of 4 points
The marginal product of labor
Selected Answer:
both a and b
Correct Answer:
both b and c
Question 7
4 out of 4 points
Refer to the