Los Angeles Mission College » Economics » Econ 001 - Principles of Economics » Fall 2021

Question #1

Number of workers: Total Product: 1 100 2 180 3 240 4 270 Use the Total Product table above. What is the Marginal physical product of the 2nd worker?

A. 180

B. 90

C. 80

D. 60

E. 360

F. 30

Question #2

When a band goes on tour to give multiple performances, which of the following inputs is a "fixed" cost?

A. the work crew hours & electicity the band uses.

B. the musical instruments (guitars, drums) and sound equipment the band uses.

Question #3

Number of workers: Total Product: 1 100 2 180 3 240 4 270 Use the Total Product table above. What is the Marginal physical product of the 3rd worker?

A. 60

B. 80

C. 30

D. 180

E. 90

F. 720

Question #4

In the short run, two types of inputs that firms use are called

A. variable,fixed

B. complements, average

C. average, complements

D. marginal, substitutes

Question #5

"Increasing Returns to Scale" is also called:

A. Rising LRAC, Constant Returns to Scale

B. Rising LRAC, Economies of Scale

C. Economies of Scale, Falling LRAC

D. Diseconomies of Scale, Constant Returns to Scale

Question #6

Modern Cost theory says: The more you produce, the more resources (variable inputs) you'll need to use for each added unit of output.

A. FALSE

B. TRUE