Econ 1580 Graded Quiz 1 || Answered Perfectly 100%.
At 36 units of labor, a firm finds that both average product of labor and marginal product of labor
equal 42. We can conclude that the average product curve at 36 units of labor is: correct answers
horizontal
Diminishing marginal returns for the first four units of a variable input is exhibited by the
marginal product sequence: correct answers 50, 40, 30, 20
Fixed costs include: correct answers op management salaries
If the slope of the total product curve is decreasing, the slope of the total variable cost curve is:
correct answers increasing
The marginal cost curve intersects the total variable cost curve at: correct answers no point; the
curves don't intersect
Average total cost is the ratio of: correct answers total cost to the quantity of output
If marginal cost is equal to average total cost, then: correct answers average total cost is at its
minimum
(Graph) In this exhibit (A Firm's Cost Curves) the curve labeled W represents the firm's _______
curve. correct answers average total cost
When an increase in the firm's output reduces its long-run average cost, it experiences: correct
answers economies of scale
The slope of a long-run average cost curve exhibiting diseconomies of scale is: correct answers
positive
, Which of the following statements is false?
Select one:
a. The income effect of normal goods counters the substitution effect so the demand curve is
upsloping.
b. The income effect and the substitution effect reinforce each other when there are price changes
for a normal good.
c. The income effect represents the decrease in quantity demanded caused by the implicit change
in income due to a fall in the price of an inferior good but not for a normal good.
d. The substitution effect represents the change in quantity demanded solely due to a change in
the relative price of a good. correct answers The income effect of normal goods counters the
substitution effect so the demand curve is upsloping
For a/an _______ good, an increase in income will lead to an increase in _______ . correct
answers normal; consumption
Assume that the total utilities for the fifth and sixth units of a good consumed are 83 and 97,
respectively. The marginal utility for the sixth unit is: correct answers 14
(TAble) In this exhibit (Consumer Equilibrium 1), assume that the price of good X is $2 per unit
and the price of good Y is $1 per unit, and you consume 3 units of good X and 3 units of good Y.
To maximize utility, assuming that the goods are divisible, you would consume: correct answers
less of X and more of Y
If the price of apples falls and the price of oranges remains constant:
Select one:
a. apples are now relatively cheaper.
b. the fall in the price of apples made consumers richer.
c. the fall in the price of apples, ceteris paribus, makes the marginal utility of apples divided by
their price exceed the marginal utility of oranges divided by their price.
d. all of the above statements are true. correct answers all of the above statements are true
At 36 units of labor, a firm finds that both average product of labor and marginal product of labor
equal 42. We can conclude that the average product curve at 36 units of labor is: correct answers
horizontal
Diminishing marginal returns for the first four units of a variable input is exhibited by the
marginal product sequence: correct answers 50, 40, 30, 20
Fixed costs include: correct answers op management salaries
If the slope of the total product curve is decreasing, the slope of the total variable cost curve is:
correct answers increasing
The marginal cost curve intersects the total variable cost curve at: correct answers no point; the
curves don't intersect
Average total cost is the ratio of: correct answers total cost to the quantity of output
If marginal cost is equal to average total cost, then: correct answers average total cost is at its
minimum
(Graph) In this exhibit (A Firm's Cost Curves) the curve labeled W represents the firm's _______
curve. correct answers average total cost
When an increase in the firm's output reduces its long-run average cost, it experiences: correct
answers economies of scale
The slope of a long-run average cost curve exhibiting diseconomies of scale is: correct answers
positive
, Which of the following statements is false?
Select one:
a. The income effect of normal goods counters the substitution effect so the demand curve is
upsloping.
b. The income effect and the substitution effect reinforce each other when there are price changes
for a normal good.
c. The income effect represents the decrease in quantity demanded caused by the implicit change
in income due to a fall in the price of an inferior good but not for a normal good.
d. The substitution effect represents the change in quantity demanded solely due to a change in
the relative price of a good. correct answers The income effect of normal goods counters the
substitution effect so the demand curve is upsloping
For a/an _______ good, an increase in income will lead to an increase in _______ . correct
answers normal; consumption
Assume that the total utilities for the fifth and sixth units of a good consumed are 83 and 97,
respectively. The marginal utility for the sixth unit is: correct answers 14
(TAble) In this exhibit (Consumer Equilibrium 1), assume that the price of good X is $2 per unit
and the price of good Y is $1 per unit, and you consume 3 units of good X and 3 units of good Y.
To maximize utility, assuming that the goods are divisible, you would consume: correct answers
less of X and more of Y
If the price of apples falls and the price of oranges remains constant:
Select one:
a. apples are now relatively cheaper.
b. the fall in the price of apples made consumers richer.
c. the fall in the price of apples, ceteris paribus, makes the marginal utility of apples divided by
their price exceed the marginal utility of oranges divided by their price.
d. all of the above statements are true. correct answers all of the above statements are true
