ECON100 PASS Week 5 (Hard)

Which of the following is NOT a form of input a firm can use?

• Capital

• Labour

• Technology

• Land

What is meant by 'technological change' in the context of production?

• The change in the quantity of output produced

• The change in the number of workers in a firm

• The change in the ability of a firm to produce output with a given quantity of inputs

• The change in the prices of inputs

What defines the 'short run' in economics?

• A period of time too short to make any changes in production

• A period of time during which all of the firm's inputs are variable

• A period of time during which at least one of the firm's inputs is fixed

• A period of time long enough to vary all of its inputs

What is an 'implicit cost'?

• A cost that involves spending money

• A cost that remains constant as the quantity of output changes

• A non-monetary opportunity cost

• The highest-valued alternative that must be given up to engage in an activity

What are the explicit costs of Julie Johnson's photocopying store per year according to Table 6.1?

• $161,000

• $108,000

• $53,000

What is the relationship between the inputs employed by the firm and the maximum output it can produce with those inputs called?

• Cost Function

• Economic Depreciation

• Production Function

• Implicit Cost

What does the abbreviation 'PF' stand for as mentioned at the bottom of the image?

• Price Function

• Production Function

• Profit Function

• Performance Function

What does the abbreviation 'CF' stand for as mentioned at the bottom of the image?

• Cost Function

• Cash Flow

• Capital Formation

• Customer Feedback

Why does the average total cost start to increase at a certain point according to the graph?

• Because the number of photocopies decreases

• Because the wage paid to workers increases

• Because the same wage is being paid but efficiency is not increasing

• Because the price of photocopy machines increases

What is the Law of Diminishing Returns in the context of the Marginal Product of Labour?

• Adding more workers increases the total output indefinitely

• The additional output increases when more workers are hired

• At some point, adding more of a variable input causes the marginal product of the variable input to decline

• The marginal product of labour is constant regardless of the number of workers