Score:

50 out of 100 points (50%)

The questions on this assignment were scrambled. The question order below has been standardized to assist you in discussions of the results with your instructor.

1.
award:

0 out of 10.00 points

People benefit by participating in the market because: Resources are no longer limited. It facilitates specialization and increased consumption. Buyers and sellers have the same goals. Participants in the market do not have to make choices. Specialization is necessary due to inability to produce all things desired and the limited amount of time to produce all desired goods. Multiple Choice Learning Objective: 03-01

2.
award:

10 out of 10.00 points

Any place where factors of production are bought and sold is a: Private-goods market. Stock market. Product market. Factor market. Market participants buy or sell land, labor, or capital that can be used in the production process. Multiple Choice Learning Objective: 03-01

3.

award:

10 out of 10.00 points

Producers _______ factors of production in the _______ market. Buy; factor Sell; stock Buy; stock Sell; product Producers buy factors such as labor in the factor market. Multiple Choice Learning Objective: 03-01

4.
award:

10 out of 10.00 points

In the U.S. economy, foreigners participate in: The factor market only. The product market only. Both the product and factor markets. Foreigners do not participate in the U.S. economy. Foreigners participate in the product and factor market with imports and exports. Multiple Choice Learning Objective: 03-01

5.
award:

0 out of 10.00 points

Which of the following situations is sufficient to represent current demand for a car? You have plenty of money to buy it, but you can't decide if you want a motorcycle or a car. You have enough money to buy it, and you are willing to spend the money on the car. You've decided you want a car, and you can possibly borrow the money from a bank.

You want to buy a motorcycle and a car, and you'll have enough money for both in two years. A demand exists only if someone is willing and able to pay for the goods. Multiple Choice Learning Objective: 03-02

6.
award:

10 out of 10.00 points

Which of the following are factors of production for Terry's Taco Patio? Economic costs and money Average total cost and entrepreneurship Productivity and labor Corn tortillas and meat Corn tortillas and meat would be a part of variable capital. Multiple Choice Learning Objective: 05-01

7.
award:

0 out of 10.00 points

The maximum output that can be produced from a set of inputs is measured by: The production function. The demand schedule. Fixed costs. Marginal costs. A production function gives the maximum amount of output with a given amount of inputs. Multiple Choice Learning Objective: 05-01

8.
award:

0 out of 10.00 points

Which of the following statements concerning the relationship between total product (TP) and marginal physical product (MPP) is not correct? TP will continue to rise even though MPP is falling but greater than zero. TP is increasing at an increasing rate if MPP is increasing. TP will fall if MPP is negative. TP will fall if MPP is falling.

So long as MPP is greater than zero, it will be adding to TP at a decreasing rate. Multiple Choice Learning Objective: 05-01

9.
award:

0 out of 10.00 points

If the first, second, third and forth worker employed by the firm add 15, 21, 12 and 8 units of total product respectively, we can conclude that: The marginal product of all four workers is 14. The total product of two workers is 42. after the second worker marginal product declines. adding a forth worker will cause total product to decline. At first marginal physical product increases but eventually the law of diminishing returns will cause marginal physical product to decline. Multiple Choice Learning Objective: 05-02

10.
award:

10 out of 10.00 points

Marginal physical product is: Equal to the average output of a worker. The additional utility a consumer gets from the last unit of a product. The additional output from using one more unit of labor.

Equal to the total product of labor. Marginal physical product is equal to the change in total product divided by the change in the quantity of resource applied. Multiple Choice Learning Objective: 05-02

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