ct ヒ B 16. A production possibilities curve can shift inward if there is (A) an increase in productivity (B) an increase in unemployment (C) an increase in the price of raw materials (D) a misallocation of resources (E) a natural disaster
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- 12. Which of the following will increase a company's overall equipment effectiveness (OEE)? Decrease in Machine Time Available Decrease in Ideal Run Rate Yes Yes A) B) C) D) Yes No No Yes No No A. Choice A B. Choice B C. Choice C D. Choice DWhy do you think the change in the index of labor cost per unit of output is a useful lagging indicator of the macroeconomy?Q45 Under which of the following cost approach limitations the economic value of human resources increases over time as the people gain experience but the capital cost diminishes through amortization process and hence becomes difficult to reconcile it. a. Standard cost b. Replacement cost c. Opportunity cost d. Historical cost
- Which of the following is a disadvantage of outsourcing? A. freeing up capacity B. freeing up capital C. transferring production and technology risks D. limiting ability to upsize or downsize production2. Consider the production functions given below: a. Suppose that the production function faced by a bread producer is given by Q = 4KL, where MPK = 4L and MP, = 4K. i. Do both labor and capital display diminishing marginal products in the short run? Explain. ii. Find the marginal rate of technical substitution for this production function. (Hint: The MRTS MPL MPK iii. Does this production function display a diminishing marginal rate of technical substitution? iv. Graph isoquants for Q = 20, and Q = 40. Put capital (K) on the y-axis and labor (L) on the x- axis. Label the isoquants with their quantities. v. What are the returns to scale for this firm? Explain. 20 19 18 17 16 15 14 13 12 11 10 9 0 1 2 3 4 5 6 00 9 10 11 12 13 14 15Which of the following will increase a company's manufacturing cycle efficiency (MCE)? Decrease in Inspection Time Decrease in Queue Time A) Yes Yes B) Yes No C) No Yes D) No No
- Question 10 An increate in Fixed Cost per unit maybe attributed with decrease in production. A. True B. Falsethe link between short-run average costs and long-run average costs? Explain the association between return to scale and economies of scale and suggest the potential sources of internal and external economies of scale. Why might firms face diseconomies of scale and shutdown/break-even situations in the long run?PQ 15. assuming full employment Expansionary aggregate demand oriented fiscal policy leads, ceteris paribus, to a. a short run fall in both income and the price level b. a short run rise in income and a fall in the price level c. no change in the long run equilibrium level of income and to an increase in the price level d. both an increase in the long run equilibrium level of income and an increase in the price level.
- Which of the following is true about the changes in fixed cost? An increase in production will result in an increase in per unit fixed cost. A decrease in fixed cost will result in an increase in variable cost. An increase in production will result in a decrease in per unit fixed cost. A decrease in production will result in an increase in total fixed cost.6. What of the following might result from dropping an unprofitable customer? a. Sales levels would decrease b. Future business relations could suffer c. Costs would decline d Costs could stay the same in the short-term e. All of the above be2. What effect could be the following changes, occurring independently, have on (1) contribution margin, and (ii) expected profit. D. An increase in fixed costs. E. An increase in wages rates applicable to direct, strictly variable labour. F. An increase in the selling price of the product. G. An increase in production volume. A