Practice Test

Name: ________________________ ID: A
____ 9. (Table 53-2: Tutoring) At the optimal hours of tutoring, Sigmund's total net gain is:
a. $60.
b. $50.
c. $30.
d. $15.
e. $5.
____ 10. If the marginal benefit received from a good is equal to the marginal cost of production, then:
a. society's well-being cannot be improved by changing production.
b. society's well-being can be improved if production decreases.
c. society's well-being can be improved if production increases.
d. the market is producing too much of the good.
e. the market is producing too little of the good.
____ 11. If the marginal cost curve is upward-sloping, this means that as output _____, marginal costs will:
a. increases; increase.
b. increases; decrease.
c. decreases; stay constant.
d. increases; stay constant
e. decreases; increase.
Quantity Total
of Labor Output
0 0
1 12
2 22
3 30
4 36
5 40
6 43
7 44
Table 54-1 : Labor and Output
____ 12. (Table 54-1: Labor and Output) Referring to the table, the average product when four workers are employed
is:
a. 4.
b. 36.
c. 10.
d. 6.
e. 9.
____ 13. If two firms are identical in all respects expect that one has more capital than another, the total product curve
for the firm with more capital:
a. must equal the total product curve for the firm with less capital.
b. is upward sloping, while the total product curve for the firm with less capital is
downward sloping.
c. will lie below the total product curve for the firm with less capital.
d. will show no diminishing marginal returns.
e. will lie above the total product curve for the firm with less capital.
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