TEST BANK FOR CHAPTER 6: Production

MULTIPLE CHOICE 1. With a cubic production with fixed capital Q = A + BL + CL2 + DL3 and a shape shown above, A is a. positive and greater than B. b. positive and less than B. c. zero. d. negative. ANS: c 2. With a cubic production with fixed capital Q = A + BL + CL2 + DL3 and a shape shown above, C is a. positive. b. zero. c. negative and less than D. d. negative and greater than D. ANS: a 1 This study source was downloaded by from CourseH on :19:56 GMT -05:00 TEST BANK FOR CHAPTER 6 : PRODUCTION Chapter 6: Production 3. With a quadratic production with fixed capital Q = A + BL +CL2 and the shape shown above, A is a. positive and greater than B. b. positive and less than B. c. zero. d. negative. ANS: c 4. With a quadratic production with fixed capital Q = A + BL +CL2 and the shape shown above, B is a. positive. b. zero. c. negative and less than D. d. negative and greater than D. ANS: a 5. If production is given by Q = KL, doubling both inputs a. more than doubles output. b. exactly doubles output. c. increases output but does not double it. d. leaves output unchanged. ANS: a 6. If production is given by Q = KL  , ( + B 1) doubling both inputs a. more than doubles output. b. exactly doubles output. c. increases output but does not double it. d. leaves output unchanged. ANS: c 2 This study source was downloaded by from CourseH on :19:56 GMT -05:00 Chapter 6: Production 7. Suppose Q = KL  , if  +  1 the isoquants will be a. upward sloping. b. progressively closer together at higher quantities. c. progressively further apart at higher quantities. d. equally spaced. ANS: b 8. Suppose Q = KL  , if  +  1 the isoquants will be a. upward sloping. b. progressively closer together at higher quantities. c. progressively further apart at higher quantities. d. equally spaced. ANS: c 9. If Q = K1/2L 1/2 the MPL is a. constant b. increasing c. diminishing d. not enough information to determine ANS: c 10. If Q = K1/2L 1/2 the MPK is a. constant b. diminishing c. increasing d. not enough information to determine ANS: b 11. If Q = K2L 2 the MPL is a. constant b. diminishing c. increasing d. not enough information to determine ANS: c 12. If Q = K2L 2 the MPK is a. constant b. diminishing c. increasing d. not enough information to determine ANS: c 13. If Q = K1/3L 2 the MPL is a. constant b. diminishing c. increasing d. not enough information to determine