The short run is defined as a period during which:a.one or more inputs cannot be freely varied.b.labor is counted as a fixed input.c.all inputs are fixed.d.all inputs are variable.QUESTION 2Which of the following statements is True? TP - Total Product; AP - Average Product; MP - Marginal Product.a.When the TP curve is rising, the MP curve is above the TP curve.b.The TP, AP and MP curves do not have any relationship with one another.c.When the AP curve is falling, the MP curve is above the AP curve.d.When the AP curve is rising, the MP curve is above the AP curve.QUESTION 3The general rule for allocating a productive resource efficiently across different production activities of the same product, like fishing boats in the example that we discussed in the class, is to choose the allocation for which the:a.Average product is the same in every activity.b.Marginal product is the same in every activity.c.Total product is the same in every activity.d.Average product is equal to Marginal product in every activity.QUESTION 4The rate at which one input can be exchanged for another without altering output is the:a.the slope of the average product curve.b.the slope of the total product curve.c.the slope of the marginal product curve.d.the slope of the isoquant.QUESTION 5The production function of a firm is given by Q=K1/2L1/2, where Q, K and L are output, capital and labor, respectively. Which of the following statements is True? a.Depending on the inputs, the technology displays all three situations with respect to returns to scale: constant, increasing and decreasing.b.The technology displays constant returns to scale for some combinations of inputs and increasing returns to scale for other combinations of inputs.c.The technology displays constant returns to scale.d.The technology displays increasing returns to scale.QUESTION 6A firm sells coffee powder by using coffee beans and grinding machines. Considering grinding machines and coffee beans as inputs, what is the most likely shape of the isoquants? a.smooth curves.b.negatively sloped straight lines.c.L-shaped.d.positively sloped straight lines.QUESTION 7Total cost is broken into two components, which are:a.average cost and fixed cost.b.average cost and marginal cost.c.variable cost and marginal cost.d.fixed cost and variable cost.1 points QUESTION 8The vertical distance between the total variable cost and total cost curves:a.is everywhere equal to zero.b.is everywhere equal to marginal cost.c.is everywhere equal to total fixed cost.d.increases at a decreasing rate.QUESTION 9A firm has production given by Q=KL, where Q, K and L denote output, capital and labor respectively. In the short run, the firm uses 2 units of capital. The price of capital and labor are $2 and $3, respectively. What is the Fixed Cost (FC)?a.8b.4c.2d.2Q.QUESTION 10A firm has production given by Q=2KL, where Q, K and L denote output, capital and labor respectively. In the short run, the firm uses 3 units of capital. The price of capital and labor are $3 and $12, respectively. The Average Variable Cost (AVC) function is:a.9.b.2Q.c.2.d.9+2Q.

Labor Supply Regressions1 - Results of multiple regression of average weekly hours on hourly earnings and other variables for white and black males 18-64, 1980. H = c - E + M + S + A - B - I wherec = constantH = mean hours worked by male wage and salary workers in census week, 1980E = hourly wage and salary incomeM = marital status (1=married)S = schooling, in yearsA = ageB = race (1=black)I = other income 2 - Labor force participation for 1980 population over 65 years of age N = c + E - I (Males) N = c + E - I (Females) whereN = percent in labor force (labor force participation rate)E = earningsI = other income for females 16-65 N = c +E - I + S - K whereU = unemployment rateK = number of kids Questions:1. Do more educated women have a higher or lower labor force participation?2. What is the effect of children on women's labor force participation?3. Do married women work greater amounts than non-married men?4. Is the male labor supply curve for hours "backward bending"?

Identify a situation that involves making decisions using expected value, and detail the different options, expectations, and payouts. Discuss the risks involved with those expectations and, if applicable, the payouts. Include in the discussion an explanation of how to determine how much information to gather to minimize uncertainty. Finally, explain which decision should be made.