Production and Costs TP and MP Sample Questions

1. Production and CostsTP and MP Sample Questions AP Economics Mr. Bordelon

2. The marginal product of the second worker is: • 10. • 15. • 20. • 30. • 0.

3. The marginal product of the second worker is: • 10. • 15. • 20. • 30. • 0.

4. Negative marginal returns begin when the _____ worker is added. • fifth • sixth • seventh • eighth • fourth

5. Negative marginal returns begin when the _____ worker is added. • fifth • sixth • seventh • eighth • fourth

6. Suppose that the first four units of a variable input generate corresponding total outputs per period of 200, 350, 450, and 500, respectively. The marginal product of the second unit of input is: • 50. • 100. • 150. • 200. • 350.

7. Suppose that the first four units of a variable input generate corresponding total outputs per period of 200, 350, 450, and 500, respectively. The marginal product of the second unit of input is: • 50. • 100. • 150. • 200. • 350.

8. When hiring units of labor between zero and L1 units of labor, which of the following statements is true? • The marginal product of labor is increasing. • The marginal product of labor is decreasing. • Total product is increasing at a diminishing rate. • Average product is decreasing. • Total product is increasing at a constant rate.

9. When hiring units of labor between zero and L1 units of labor, which of the following statements is true? • The marginal product of labor is increasing. • The marginal product of labor is decreasing. • Total product is increasing at a diminishing rate. • Average product is decreasing. • Total product is increasing at a constant rate.

10. Hiring L2 units of labor results in total product attaining a _____ and the marginal product of labor _____. • minimum; being equal to zero • maximum; being equal to zero • maximum; being positive • minimum; falling, but still being positive • maximum; being negative

11. Hiring L2 units of labor results in total product attaining a _____ and the marginal product of labor _____. • minimum; being equal to zero • maximum; being equal to zero • maximum; being positive • minimum; falling, but still being positive • maximum; being negative

12. You own a small deli that produces sandwiches, soups, and other items for customers in your town. Which of the following is a decision most likely to be made in the long run at your deli? • You order more breadsticks from the local bakery. • You ask your beverage distributor to deliver more soft drinks next week. • You decide to keep the deli open two more hours on the two busiest nights of the week. • You place a newspaper advertisement to attract part-time workers from the local college. • You renovate the second floor of your building to increasing the size of the dining room.

13. You own a small deli that produces sandwiches, soups, and other items for customers in your town. Which of the following is a decision most likely to be made in the long run at your deli? • You order more breadsticks from the local bakery. • You ask your beverage distributor to deliver more soft drinks next week. • You decide to keep the deli open two more hours on the two busiest nights of the week. • You place a newspaper advertisement to attract part-time workers from the local college. • You renovate the second floor of your building to increasing the size of the dining room.

14. Assuming that all other factors of production are held constant, marginal product is the change in _____ output resulting from a one-unit change in _____. • total; a variable input • total; a fixed input • total; average product • per unit; a fixed input • total; consumption

15. Assuming that all other factors of production are held constant, marginal product is the change in _____ output resulting from a one-unit change in _____. • total; a variable input • total; a fixed input • total; average product • per unit; a fixed input • total; consumption