Chapter 7

Question 1

Which of the following are factors of production?

Answer 1

land, labor, capital, and entrepreneurship

Question 2

A production function shows the

Answer 2

maximum output of a good attainable from different combinations of factor inputs.

Question 3

Greater labor productivity means

Answer 3

higher output per worker.

Question 4

(Figure 21.1) The marginal physical product of labor is negative for the

Answer 4

sixth worker.

Question 5

(Figure 21.1) Diminishing marginal returns first occur with the

Answer 5

third worker.

Question 6

The change in total output associated with one additional unit of input is the

Answer 6

marginal physical product.