ECON 3070 FALL 2020 - Intermediate Microeconomics Additional Practice Questions for Exam 2.

Exam 2 will cover:
• Lectures 8, 9, 10, 11, 12, 13, 14.
• Material discussed in the recorded lectures and in the lecture slides.
• Emphasis will be placed on Lectures 11-14.
• About 75% of the exam will be on material from Lectures 11-14. 
• About 25% of the exam will be on material from Lectures 8-10.
• Please review especially examples in lectures, problem sets, and homework 
quizzes. 
Below are some additional practice questions:
Part 1. Choose the most appropriate answer in each of the following questions. 
1. True or False: If marginal product is increasing, average product 
must also be increasing.
A. True.
B. False. 
Ans: A
2. If a firm's average cost decreases as itwoutput increases, then 
there are
A. constant returns to scale.
B. decreasing returns to scale.
C. economies of scale.
D. diseconomies of scale.
Ans: C
3. All points on an isoquant curve correspond to
A. the same amount of inputs.
B. the same amount of utility.
C. the same amount of marginal rate of substitution.
D. the same amount of production cost.
E. the same amount of output. 
Ans: E
4. If the marginal product of labor is 4, the marginal rate of 
technical substitution of labor for capital is 3, then the marginal 
product of capital will be
A. 3. B. 4. C. 3/4. D. 6. E. 3/2. F. 4/3
Ans: F