Tackle the Test: Multiple-Choice Questions

1. Question

   A production function shows the relationship between inputs and

   A.

   fixed costs.

   B.

   variable costs.

   C.

   total revenue.

   D.

   output.

   E.

   profit.

   A production function shows the relationship between inputs and

2. Question

   Which of the following defines the short run?

   A.

   less than a year

   B.

   when all inputs are fixed

   C.

   when no inputs are variable

   D.

   when only one input is variable

   E.

   when at least one input is fixed

   Which of the following defines the short run?

3. Question

   The slope of the total product curve is also known as the

   A.

   marginal product.

   B.

   marginal cost.

   C.

   average product.

   D.

   average revenue.

   E.

   profit.

   The slope of the total product curve is also known as the

4. Question

   When the returns to an input are diminishing and a profit-maximizing firm chooses to hire more of the input, the total product curve has what kind of slope?

   A.

   negative decreasing

   B.

   positive decreasing

   C.

   negative increasing

   D.

   positive increasing

   E.

   positive constant

   When the returns to an input are diminishing and a profi

5. Question

   Historically, the limits imposed by diminishing returns have been alleviated primarily by

   A.

   investment in capital.

   B.

   increases in the population.

   C.

   discovery of more land.

   D.

   Thomas Malthus.

   E.

   economic models.

   Historically, the limits imposed by diminishing returns have been alleviated primarily by