1. Business
2. Economics
3. 1 an increase in employerpaid pension costs will decrease the...

# Question: 1 an increase in employerpaid pension costs will decrease the...

###### Question details

1.   An increase in employer-paid pension costs will decrease the:

(a)   supply of workers.

(b)  quantity supplied of workers.

(c)   quantity demanded of workers.

(d)  demand for workers.

2.   The production function Q = -64X0.5Y0.4 exhibits:

(a)   constant returns to scale.

(b)  increasing returns to scale.

(c)   diminishing returns to scale.

(d)  increasing and then diminishing returns to scale.

3.   If PX = €60,000, MPX = 300 and MRQ = €250, the marginal revenue product of X equals:

(a)   €75,000.

(b)  300.

(c)   €250.

(d)  €60,000.

4.   Minimum efficient scale will decrease if:

(a)   fixed costs increase.

(b)  transportation costs increase in relation to production costs.

(c)   transportation costs decrease in relation to production costs.

(d)  variable costs decrease.

5.      If the slope of a long-run total cost function increases as output increases, the firm's underlying production function exhibits:

(a)   constant returns to scale.

(b)  decreasing returns to scale.

(c)   decreasing returns to a factor input.

(d)  increasing returns to scale.

6.      Assume the following for a firm:

Demand function:  P= 53- Q

Total Revenue function: TR= 53- Q^2

Marginal Revenue: MR= 53- 2Q

Total cost function: TC= 1000 + 5Q + Q^2

Marginal cost function: MC= 5+ 2Q

Average cost function: AC= 1000/Q + 5 + Q

The profit maximising level of output will be:

(a)   11

(b)  12

(c)   13

(d)  14

7.      Using the profit maximising level from the previous question above, the profit maximising Total Revenue will be:

(a)   492

(b)  352

(c)   406

(d)  390

8.      When demand is perfectly elastic, regulatory costs are never borne by:

(a)   consumers.

(b)  management.

(c)   stockholders.

(d)  government.

9.      The desirability of maintaining a reputation for selling high-quality goods and services is minimal in the case of:

(a)   a finitely repeated game with known duration.

(b)  a finitely repeated game of unknown duration.

(c)   an infinitely repeated game.

(d)  none of these.

10.   In the risk-adjusted discount rate approach, increasing risk aversion is reflected in a cost of capital that exceeds the:

(a)   risk-free rate.

(b)  risk free rate and falls with increasing risk.

(c)   risk free rate and falls with decreasing risk.

(d)  none of these.

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