【正文】 last worker multiplied by the wage rate. D) total product divided by the wage rate. E) total product divided by the quantity of labor. Ans: E13. The employment of which of the following inputs might be adjusted in the short run? A) Physical capital. B) Number of hours worked by labor. C) Units of energy required per unit output. D) Units of material required per unit output. E) None of the above. Ans: B14. When will the average product of labor increase? A) New technology improves the quality of capital used by labor. B) Marginal product of labor is increasing. C) Additional workers are hired. D) Both A and C. E) Both A and B. Ans: E15. As businesses grow, their need for capital typically tends to: A) increase. B) decrease. C) grow at the same rate as the business. D) remain unchanged. E) be acmodated automatically by the marketplace. Ans: ACHAPTER 71. Given the curves shown in Figure 71, the marginal cost of the 3rd unit of output is: A) $. B) $. C) $. D) $. E) none of the above. Ans: A2. Given the curves shown in Figure 71, the average variable cost of 3 units of output is: A) $. B) $. C) $. D) $. E) none of the above. Ans: B3. If the total cost of producing 10 units is $100 and the marginal cost of the eleventh unit is $21, then which of the following is NECESSARILY true? A) Total variable costs of 11 units are $121. B) Total fixed costs are $79. C) The marginal cost of the tenth unit is more than $21. D) The average total cost of 11 units is $11. E) The average total cost of 12 units is $12. Ans: D4. Which of the following is true at the quantity of output where average cost has reached its minimum level? A) AVC = FC. B) MC = AVC. C) MC = AC. D) AC = AFC. E) Output price = AVC. Ans: C5. Diminishing returns to factors of production cause: A) diminishing opportunity costs. B) the ratio of fixed costs to total costs to increase. C) average fix。 in Figure 11, which of the following points is least efficient? A) B39。E39。 the new one, which of the following could have caused the change?A) Consumer ine rose, causing a supply shift. B) Bad weather caused a supply shift. C) Consumer ine rose, causing a demand shift. D) Supply and demand both shifted. E) None of the above are plausible descriptions. Ans: C2. The demand curve for a normal good will shift to the left if: A) ine increases. B) population increases C) the price of a substitute good decreases. D) all the above. E) none of the above. Ans: C3. A price at which the amount people wish to buy exceeds the amount that people wish to produce (given upwardsloping supply curves): A) lies above the equilibrium, market clearing price. B) lies below the market clearing price. C) will induce a shift in the demand schedule to achieve equilibrium. D) is impossible. E) is none of the above. Ans: B4. An increase in the supply of modity X for any given price of X could be expected to be caused by A) an increase in the prices of other modities. B) an increase in the prices of factors of production important to this modity. C) a reduction in the prices of factors of production important to this modity. D) an increase in consumer ine. E) none of the above. Ans: C5. Given the supply and demand curves drawn for a normal good in Figure 32, an increase in ine can be expected to cause: A) equilibrium price and quantity to increase. B) equilibrium price to increase and equilibrium quantity to fall. C) equilibrium price to increase while equilibrium quantity holds steady. D) equilibrium price and quantity to fall. E) equilibrium price to fall and equilibrium quantity to climb. Ans: A6. Let P* and Q* represent market clearing price and quantity, respectively. Given the supply and demand curves drawn in Figure 32, an increase in the price of an input employed in the production of Q can be expected to cause: A) P* and Q* to climb. B) P* to climb while Q* falls. C) P* to climb while Q* holds steady. D) P* to fall while Q* climbs. E) P* and Q* to fall. Ans: B7. An increase in price will lead to a lower quantity demanded because: A) suppliers will supply only the smaller amount. B) quality deteriorates. C) people will purchase less of the good. D) all of the above. E) none of the above. Ans: C8. Upwardsloping supply curves are the result of: A) increasing returns to scale. B) increasing costs of production. C) changes in government policies. D) changes in technology. E) none of the above Ans: E9. Suppose that at the current market price, the amount which producers wish to produce and sell exceeds the amount that consumers wish to purchase. This price: A) lies above the market clearing price. B) lies below the market clearing price. C) is impossible. D) will induce a shift in the demand schedule. E) none of the above. Ans: A10. In a petitive market, the market clearing quantity is determined primarily by: A) the supply of the good. B) the cost of producing the good in question. C) the interaction of supply and demand. D) the decisions of the buyers as to how much they are willing to pay. E) all of the above. Ans: E11. Let P* and Q* in Figure 34 represent market clearing price and quantity, respectively. Given the supply and demand curves drawn in Figure 34, a reduction in the price of a substitute good for Q can be expected to cause: A) P* and Q* to climb. B) P* to climb while Q* declines. C) P* to climb while Q* holds fixed. D) P* to fall while Q* climbs. E) P* and Q* to fall. Ans: E12. Let P* and Q* represent market clearing price and quantity, respectively. Given the suppl