Question Details

The Cobb-Douglas production function has which of the following properties 



1.	The isoquants for inputs that are perfect complements for one another consist of a series of:
a.	right angles
b.	parallel lines
c.	concentric circles
d.	right triangles
e.	none of the above


	
	2.	Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:
a.	increasing returns to scale
b.	constant returns to scale
c.	decreasing returns to scale
d.	negative returns to scale
e.	none of the above


	
	3.	The primary purpose of the Cobb-Douglas power function is to:
a.	allow one to make estimates of cost-output relationships
b.	allow one to make predictions about a resulting increase in output for a given increase in the inputs
c.	aid one in gaining accurate empirical values for economic variables
d.	calculate a short-run linear total cost function
e.	a and b


	
	4.	The original Cobb-Douglas function was given as . It was subsequently rewritten as . What benefit was derived in the revision?
a.	the function becomes a non-linear relationship so it would fit to production curves having an "S" shape
b.	returns to scale can be shown in the revision
c.	returns to scale become constant
d.	a and b only
e.	a, b, and c


	
	5.	The Cobb-Douglas production function has which of the following properties?
a.	output is a linear increasing function of each of the inputs
b.	it provides a good fit to the traditional S-shaped production function
c.	the elasticity of production is constant and equal to 1 minus the exponent of the appropriate variable
d.	all of the above
e.	none of the above


	
6.	In the Cobb-Douglas production function ( ):
a.	the marginal product of labor (L) is equal to 1
b.	the average product of labor (L) is equal to 2
c.	if the amount of labor input (L) is increased by 1 percent, the output will increase by 1 percent
d.	a and b
e.	a and c




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