Consider the following statements when answering this questionI. If a

1.Consider the following statements when answering this question:I. Whenever the marginal product of labor curve is a downward sloping curve, the average product oflabor curve is also a downward sloping curve that lies above the marginal product of labor curve.II. If a firm uses only labor to produce, and the production function is given by a straight line, then themarginal product of labor always equals the average product of labor as labor employment expands. 选项： A:I is true, and II is false. B:I is false, and II is true. C:Both I and II are true. D:Both I and II are false.

2.Use the following two statements to answer this question:I. If the marginal product of labor is zero, the total product of labor is at its maximum.II If the marginal product of labor is at its maximum, the average product of labor is falling. 选项： A:Both I and II are true. B:I is true, and II is false. C:I is false, and II is true. D:Both I and II are false.

3.Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 4 workers, the firm produces 50 units of output. If the fixed cost of production is $4, the variable cost per unit of labor is $20, and the marginal product of labor for the fifth unit of labor is 2, what is the average total cost of production when the firm hires 5 workers?_________. 选项：A、$22.80 B、$2.00 C、$20.00 D、$20.80

4.Read the two statements below and indicate if they are true or false. 选项： A、I and II are both true. B、 I and II are both false. C、 I is true and II is false. D、 I is false and II is true.

5.A monopolist produces a good using only one factor, labor. There are constant returns to scale in production, and the demand for the monopolist's product is described by a downward sloping straight line with slope -1. The monopolist faces a horizontal labor supply curve. If the monopolist chooses output to maximize profits, then the:选项： A:marginal cost of labor to the monopolist exceeds the wage. B:marginal product of labor times price of output exceeds the wage. C:marginal product of labor times price of output equals the wage. D:marginal product of labor times price of output is less than the wage.

6.In a certain textile firm, labor is the only short term variable input. The manager notices that themarginal product of labor is the same for each unit of labor, which implies that: 选项： A:the average product of labor is always greater that the marginal product of labor. B:the average product of labor is always equal to the marginal product of labor. C:the average product of labor is always less than the marginal product of labor. D:as more labor is used, the average product of labor falls. E:there is no unambiguous relationship between labor's marginal and average products.

7.1.The additional output a firm gets from hiring an additional unit of labor is the选项： A:value of the marginal product of labor; B:total product of labor; C:marginal product of labor; D:average product of labor

8.The quantity of labor that a profit maximizing firm will employ, holding other input factors constant, is the level at which: A. one more unit of labor would cost less than the value of its additional output. B. the marginal product of labor is equal to the marginal cost of labor. C. the marginal revenue product of labor is equal to the wage rate.

9.The Marginal Product of Labor is 选项： A、the change in total product resulting from an extra unit of labor, holding other factors constant. B、the amount of output that can be produced by a given amount of labor. C、equal to the marginal product of labor when the average product is increasing. D、the ratio of output to the number of workers used to produce that output.

10.Use the following two statements to answer this question: I. Economic theories are developed to explain observed phenomena by deducing from a set of basic rules and assumptions. II. Economic theories use value judgments to determine which people ought to pay more taxes. 选项： A:Both I and II are true. B:I is true, and II is false. C:I is false, and II is true. D:Both I and II are false.

11.Reported GDP increases when, in fact, total production is unchanged when I. there is a shift from household production to market production. II. a previously illegal activity is legalized. 选项： A、i only B、II only C、Neither i nor II D、Both i and II.

12.If a firm uses labor to produce output, the firm’s production function depicts the relationship between 选项： A:the number of workers and the quantity of output.; B:marginal product and marginal cost.; C:the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor.; D:fixed inputs and variable inputs in the short run.

13.If we take the production function and hold the level of output constant, allowing the amounts of capital and labor to vary, the curve that is traced out is called: 选项： A:the total product. B:an isoquant. C:the average product. D:the marginal product. E:none of the above

14.Refer to Figure 6.2.1 above. At point C: 选项： A:

the marginal product of labor is greater than the average product of labor.

B:

the average product of labor is greater than the marginal product of labor.

C:

the marginal product of labor and the average product of labor are equal.

D:

the marginal product of labor and the average product of labor are both increasing.

E:

Both B and D correct

15.(I) Prices of longer-maturity bonds respond less dramatically to changes in interest rates. (II) Prices and returns for long-term bonds are less volatile than those for shorter-term bonds. 选项： A、(I) is true, (II) false. B、(I) is false, (II) true. C、Both are true. D、Both are false.

16.(I) Prices and returns for short-term bonds are less volatile than those for long-term bonds.(II) The prices of longer-maturity bonds respond more dramatically to changes in interest rates. 选项： A、I is true, II false. B、I is false, II true. C、Both are true. D、Both are false.

17.Which of the following are reasons why increasing marginal costs of production arise?I. Different products use inputs to production in different proportions.II. Different inputs are better utilized in the production of different products.III. Different countries have different endowments of the different factors of production选项： A:III; B:II and III; C: I and II and III; D:I and II

18.Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 2 workers, the total cost of production is $100. When the firm hires 3 workers, the total cost of production is $120. In addition, assume that the variable cost per unit of labor is the same regardless of the number of units of labor that are hired. What is the firm's fixed cost?_________. 选项：A、$100 B、$40 C、$60 D、$80

19.When a competitive firm hires labor up to the point at which the value of the marginal product of labor equals the wage, it also produces up to the point at which the price of output equals average variable cost选项： A:正确; B:错误

20. Which of the following statements about predetermined overhead absorption rates are true?(i)Using a predetermined absorption rate avoids fluctuations in unit costs caused by abnormally high orlow overhead expenditure or activity levels.(ii)Using a predetermined absorption rate offers the administrative convenience of being able to recordfull production costs sooner.(iii)Using a predetermined absorption rate avoids problems of under/over absorption of overheadsbecause a constant overhead rate is available. 选项： A、 (i)and (ii)only B、 (i)and (iii) only C、 (ii)and (iii)only D、 (i), (ii)and (iii)

21. A firm experiences diminishing marginal product because: A: all factors of production are variable. B: people "learn by doing." C: all factors of production are fixed. D: at least one factor of production is fixed.