Assessment 2
Started on Tuesday, 3 September 2024,
State Finished
Completed on Tuesday, 3 September 2024,
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
In a production function with labour and capital, where the marginal product of each
factor is zero, at the same time it is true that…
a.
the two factors are substitute in production.
b.
none of the options are correct.
c.
each factor of production detracts from the other in the production process
d.
the two factors are complements in production.
Feedback
Your answer is correct.
Correct Answer: the two factors are complements in production.
The two factors (labour and capital) must be perfect complements and production
must occur at the bend in the L-shaped isoquant.
The correct answer is:
the two factors are complements in production.
1
, 2025 – ECS2601 – ASSESSMENT 2 – EXPECTED Q&A
Question 2
If two perfect complements, a keyboard and a computer, are being considered and
the price of the keyboard only is increased, then the substitution effect of the price
change will …
a.
be positive because the consumer feels poorer.
b.
be negative because keyboards are inferior goods.
c.
be negative because keyboards and computers are perfect substitutes.
d.
be 0 because it is impractical to have more keyboards and fewer computers.
Feedback
Your answer is correct.
The correct answer is:
be 0 because it is impractical to have more keyboards and fewer computers.
Question 3
Suppose that there are two consumers in the market for shoes. Both consumers
have linear demand curves with different slopes but the same vertical intercept.
Assuming that shoes are an ordinary good, the market demand curve …
a.
will be a straight line without a kink.
b.
will have a kink and be steeper to the left of the kink than to the right of the kink.
c.
will have a kink and be steeper to the right of the kink than to the left of the kink.
d.
none of the options are corret.
Feedback
2
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