ME Tutorial Evaluation 3 G

Name: _____________________ Er.No.:________________

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1. The supply curve is upward-sloping because at higher d. Precise demand for a product at a future date.
prices for a good
(a) consumers search out more substitutes. 8. Diminishing marginal return implies
(b) consumer income increases. a. Decreasing average fixed costs
(c) demand is lower. b. Decreasing average variable costs
(d) None of the above. c. Increasing marginal costs
d. Decreasing marginal cost
2. With respect to production, the short run is best defined
as a time period 9. The marginal product of a variable input is best
a. lasting about six months. describe as
b. lasting about two years. a. The addition output resulting from a one unit
c. in which all inputs are fixed. increase in both the variable and fixed inputs
d. in which at least one input is fixed. b. Total product divided by the number of units of
variable input
3. Isoquants that are downward-sloping straight lines imply
c. The ratio of the amount of the variable input that is
that the inputs
being used to the amount of the fixed input that is
a. are perfect substitutes.
being used
b. are imperfect substitutes.
d. The addition output resulting from a one unit
c. cannot be used together.
increase in the variable input
d. must be used together in a certain proportion.

4. Economists typically assume that the owners of firms

wish to
a. produce efficiently.
b. maximize sales revenues.
c. maximize profits.
d. All of these.

5. Average productivity will fall as long as

a. marginal productivity is falling.
b. it exceeds marginal productivity.
c. it is less than marginal productivity.
d. the number of workers is increasing.

6. Marginal costs is the change in total cost resulting from

unit change in..
a. output
b. input
c. both(a) and (b)
d. None of these

7. Demand forecasting refers to an estimation of

a. Trends in the market.
b. Future demand for the product.
c. Most likely future demand for a product.