If marginal product is negative, total product must be negative.
a. True
b. False
QUESTION 2The long run is a period of time
a. during which at least one resource is fixed
b. during which all resources are variable
c. during which all resources are fixed
d. less than one year
e. greater than one year
QUESTION 3The short run is a period of time
a. less than one year
b. greater than one year
c. during which all resources are variable
d. during which at least one resource is fixed
e. during which at least one resource is variable
QUESTION 4The length of time that represents the long run
a. is greater than one year
b. is greater than six months
c. is longer in service industries than in manufacturing
d. is the same for all industries
e. varies from industry to industry
QUESTION 5Which of the following would most likely reach the long run most rapidly?
a. a nuclear power plant
b. a college
c. a lumber mill
d. a shopping mall
e. a hot dog stand
QUESTION 6Which of the following is a short-run adjustment?
a. Toyota builds an automobile plant in Kentucky.
b. Faced with increasing enrollment, a private college builds a new School of Business building.
c. Because of staggering losses, three insurance companies exit the industry.
d. People's Bank hires two new tellers to meet increased demand for customer services.
e. Shaveco enters the razor blade market with a new product, produced in the United States.
QUESTION 7Which of the following is a long-run adjustment?
a. A new economics professor is hired on campus.
b. General Motors increases its orders for steel.
c. Microsoft cuts back its hiring of new graduates.
d. Glow Electric disassembles one of its nuclear power plants.
e. Texaco buys more crude oil to refine into gasoline.
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