ECON 300 EXAM 2 QUESTIONS WITH
COMPLETE SOLUTIONS
What |are |the |three |categories |of |production |inputs? |- |CORRECT |ANSWER✔✔-Capital |(K), |
Labor |(L), |and |Materials |(M)
Which |of |the |following |is |least |likely |to |be |considered |a |capital |input?
a) |a |sewing |machine
b) |a |tractor
c) |a |telephone
d) |a |ten |dollar |bill |- |CORRECT |ANSWER✔✔-D) |a |ten |dollar |bill
The |menu |at |Joe's |coffee |shop |consists |of |a |variety |of |coffee |drinks, |pastries, |and |sandwiches. |
The |marginal |product |of |an |additional |worker |can |be |defined |as |the |number |of |customers |
that |can |be |served |by |that |worker |in |a |given |time |period. |Joe |has |been |employing |one |worker
|but |is |considering |hiring |a |second |and |a |third. |Explain |why |the |marginal |product |of |the |
second |and |third |workers |might |be |higher |than |the |first.
The |marginal |product |of |the |second |and |third |workers |might |be |increasing |because.. |
A. |the |company |can |purchase |more |machinery |for |the |additional |workers, |and |output |will |
increase |at |an |increasing |rate.
B. |workers |can |specialize |at |a |separate |task
specialize |at |a |separate |task, |and |total |output |will |increase.
, C. |workers |can |specialize |at |a |separate |task
specialize |at |a |separate |task, |and |average |output |will |increase.
D.workers |of |higher |quality |can |be |hired, |and |output |will |increase |at |an |increa |- |CORRECT |
ANSWER✔✔-E. |workers |can |take |advantage |of |existing |machinery |take |advantage |of |existing |
machinery, |and |output |will |increase |at |an |increasing |rate.
Why |might |you |expect |the |marginal |product |of |additional |workers |to |diminish |eventually?
Eventually, |as |successive |workers |continue |to |be |added |to |the |production |process,
A. |the |company |may |use |less |capital, |and |output |will |increase |at |a |diminishing |rate.
B. |they |may |no |longer |be |able |to |specialize
may |no |longer |be |able |to |specialize, |and |output |will |increase |at |a |diminishing |rate.
C. |the |company's |equipment |may |become |outdated |and |inefficient, |and |output |will |increase |
at |a |diminishing |rate.
D. |the |company |may |experience |setbacks |in |technology.
E. |they |may |get |in |each |other's |way |may |get |in |each |other's |way, |and |total |output |will |
decrease. |- |CORRECT |ANSWER✔✔-B. |they |may |no |longer |be |able |to |specialize
may |no |longer |be |able |to |specialize, |and |output |will |increase |at |a |diminishing |rate.
The |short |run |is...
COMPLETE SOLUTIONS
What |are |the |three |categories |of |production |inputs? |- |CORRECT |ANSWER✔✔-Capital |(K), |
Labor |(L), |and |Materials |(M)
Which |of |the |following |is |least |likely |to |be |considered |a |capital |input?
a) |a |sewing |machine
b) |a |tractor
c) |a |telephone
d) |a |ten |dollar |bill |- |CORRECT |ANSWER✔✔-D) |a |ten |dollar |bill
The |menu |at |Joe's |coffee |shop |consists |of |a |variety |of |coffee |drinks, |pastries, |and |sandwiches. |
The |marginal |product |of |an |additional |worker |can |be |defined |as |the |number |of |customers |
that |can |be |served |by |that |worker |in |a |given |time |period. |Joe |has |been |employing |one |worker
|but |is |considering |hiring |a |second |and |a |third. |Explain |why |the |marginal |product |of |the |
second |and |third |workers |might |be |higher |than |the |first.
The |marginal |product |of |the |second |and |third |workers |might |be |increasing |because.. |
A. |the |company |can |purchase |more |machinery |for |the |additional |workers, |and |output |will |
increase |at |an |increasing |rate.
B. |workers |can |specialize |at |a |separate |task
specialize |at |a |separate |task, |and |total |output |will |increase.
, C. |workers |can |specialize |at |a |separate |task
specialize |at |a |separate |task, |and |average |output |will |increase.
D.workers |of |higher |quality |can |be |hired, |and |output |will |increase |at |an |increa |- |CORRECT |
ANSWER✔✔-E. |workers |can |take |advantage |of |existing |machinery |take |advantage |of |existing |
machinery, |and |output |will |increase |at |an |increasing |rate.
Why |might |you |expect |the |marginal |product |of |additional |workers |to |diminish |eventually?
Eventually, |as |successive |workers |continue |to |be |added |to |the |production |process,
A. |the |company |may |use |less |capital, |and |output |will |increase |at |a |diminishing |rate.
B. |they |may |no |longer |be |able |to |specialize
may |no |longer |be |able |to |specialize, |and |output |will |increase |at |a |diminishing |rate.
C. |the |company's |equipment |may |become |outdated |and |inefficient, |and |output |will |increase |
at |a |diminishing |rate.
D. |the |company |may |experience |setbacks |in |technology.
E. |they |may |get |in |each |other's |way |may |get |in |each |other's |way, |and |total |output |will |
decrease. |- |CORRECT |ANSWER✔✔-B. |they |may |no |longer |be |able |to |specialize
may |no |longer |be |able |to |specialize, |and |output |will |increase |at |a |diminishing |rate.
The |short |run |is...
