Free Practice Quiz Question List

2 Marginal Product and Productivity Online Quiz Questions

Use this free practice quiz with 20 questions to review 2 Marginal Product and Productivity, test your knowledge, and prepare for your next test or exam.

20 questions

True or false

1 point

A firm can be in the short run even if it can change the number of workers it employs, as long as at least one other input is fixed. Is this statement true or false?

A
True
B
False

Fill in the blank

1 point

The total quantity of output produced is called .

Choose one

1 point

A firm has a particular technology and specified quantities of labor and equipment. What does its production function describe?

A
The total cost of all inputs used by a firm
B
The maximum output achievable from given inputs with available technology
C
The amount of output each worker produces on average
D
The extra output produced by the last unit of input

Written response

1 point

A workshop produces 42 units with 6 workers. What is its average product of labor? Enter your answer in units per worker.

True or false

1 point

If a worker's marginal product is positive, adding that worker increases the firm's total product, holding other inputs constant. Is this statement true or false?

A
True
B
False

Fill in the blank

1 point

Marginal product corresponds to the of the total-product curve.

Choose one

1 point

A bakery's output is 20 units with 2 workers and 30 units with 3 workers. What is the marginal product of the third worker?

A
6 units
B
8 units
C
10 units
D
30 units

Choose all

1 point

Select all statements that correctly describe how the next unit's marginal product affects current average product.

A
If the next unit's marginal product is above the current average product, average product rises.
B
If the next unit's marginal product is above the current average product, average product falls.
C
If the next unit's marginal product is below the current average product, average product falls.
D
Marginal product has no effect on whether average product rises or falls.

Choose one

1 point

A firm produces 52 units before adding a worker and 47 units afterward, with other inputs unchanged. Which statement correctly describes the marginal product of that worker?

A
Marginal product is 5 units, and total output rises by 5.
B
Marginal product is $-5$ units, and total output falls by 5.
C
Marginal product is 47 units, and total output falls by 5.
D
Marginal product is $-52$ units, and total output rises by 47.

Written response

1 point

A firm increases its workforce from 2 to 5 workers, and total output rises from 24 to 42 units. What is the average marginal product over this interval? Enter the value in units per worker.

Choose all

1 point

Select all statements that correctly describe diminishing marginal product when other inputs are fixed.

A
Each successive unit of the variable input adds less output than the preceding unit.
B
Total output must fall as soon as marginal product diminishes.
C
The additional output from each unit of input must be negative.
D
Total output can continue to rise if marginal product is positive, even as marginal product diminishes.

Choose one

1 point

A firm finds that additional workers are increasingly crowded around the same fixed equipment. Which response is most consistent with the production principles described?

A
Adding equipment cannot affect productivity because labor is the only variable input.
B
The firm should assume each additional worker will always add more output than the previous one.
C
Reducing the amount of equipment will necessarily prevent diminishing marginal product.
D
Adding equipment can change the input mix and help support higher productivity.

Choose one

1 point

For a smooth production curve, what is the relationship between marginal product and average product at the maximum of average product?

A
Marginal product crosses average product at average product's minimum.
B
Average product reaches its maximum only when marginal product is zero.
C
Marginal product crosses average product at average product's maximum.
D
Marginal product and average product never intersect.

Open ended

1 point

A firm expects one additional worker to produce 5 extra units. Each unit of output is worth $4, and the worker costs $24 for the relevant period. Based only on comparing the value of added output with the worker's cost, should the firm hire the worker? Show the comparison and explain your recommendation.

Choose one

1 point

A manager wants to describe the maximum output a bakery can produce from specified amounts of labor and equipment using its current technology. Which concept should the manager use?

A
A production function
B
Average product
C
Marginal product
D
Total product

True or false

1 point

If adding another worker results in negative marginal product, the firm's total output falls when that worker is added, holding other inputs constant.

A
True
B
False

Choose one

1 point

A workshop produces $54$ units of output with $6$ workers. What is its average product of labor?

A
$6$ units per worker
B
$9$ units per worker
C
$48$ units per worker
D
$324$ units per worker

Choose one

1 point

A firm adds workers while holding its other inputs fixed. The successive marginal products are $15$ , $11$ , and $7$ units. What happens to total product over these additions?

A
Total product falls with each added worker.
B
Total product stays unchanged with each added worker.
C
Total product rises, but by progressively smaller amounts.
D
Total product rises by progressively larger amounts.

Written response

1 point

A production change raises output by $24$ units when labor increases by $2$ workers, with other inputs unchanged. What is the marginal product of labor?

Written response

1 point

What is the economics term for the total quantity of output a firm produces?

2 Marginal Product and Productivity Online Quiz Questions

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