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1. Which of the following is the best example of two inputs that would exhibit a constant marginal rate of technical substitution?

trucks and truck drivers

natural gas and oil

personal computers and clerical workers

company employed computer programmers and temporary supplemental computer programmers

2. A firm using two inputs, X and Y, is using them in the most efficient manner when

MPX = MPY

PX = PY and MPX = MPY

MPX/PY = MPY/PX

MPX/PX = MPY /PY

3. An increase in demand:

causes the demand curve to shift to the left.
means consumers are willing and able to buy more at any price.
creates a surplus at the original price.
could be caused by an increase in the price of a complementary good.

4. Which of the following is a macroeconomic concern?
The wage rates of electricians in Kansas City.
The effects of agricultural price supports on the income of farmers.
How profits are maximized by a firm.
The causes of unemployment in the United States.

5.The difference between the short-run and the long-run production function is:
three months or one business quarter.
the time it takes for firms to change all production inputs.
the time it takes for firms to change only their variable inputs.
more information is required to answer this question.

6. Which of the following statements about the short-run production function is true?
MP always equals AP at the maximum point of MP.
MP always equals zero when TP is at its maximum.
TP starts to decline at the point of diminishing returns.
When MP diminishes, AP is at its minimum point.
None of the above is true.

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Answer 1: company employed computer programmers and temporary supplemental computer programmers

The skills of both would be the same and the wage rate is also likely to be the same.Thus, it is clear that they would exhibit a ...

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