School of Physics & Mathematics Kokshetau City		Name:	___________________________________
		Surname:	___________________________________
		Grade:	___________________________________
		Teacher:	Lilian Haffner, Olga, Alma

Summative assessment 4 economics Grade 11

Time:	40 minutes	March	Term 4, 2013
Total:	24 marks

This Summative Test is 100 % English

Instructions:

1. Use blue or black ballpoint pen.

2. No mobile phones may be used.

3. Mark allocations are shown in brackets, e.g. (2)

4. Read each question carefully before answering.

5. Show your work clearly and neatly.

6. Number your answers exactly as the questions are numbered.

7. Remember to check your answers before submitting your paper.

8. There are pages to this Summative Assessment, including this page, Scratch paper has been provided for you for.

	SECTIONS	Question number/s	Total Marks	Mark Achieved
1.	Multiple Choice	1 – 24	24
		TOTAL	24

Please select the best answer and record your answers on the answer sheet provided. Multiple choice

Criteria A

1 point

1. The Marginal product of an output is the:

1. The item that has less quality than the other items of the output

2. The total output as an additional worker is hired

3. The total selling revenue as an additional worker is hired

4. The change in total output that is produced when 1 additional worker is hired.

Criteria A

1 point

2. The total revenue product is:

1. The additional sales revenue that occurs from additional output created by one or more workers

2. The total sales revenue created from th sale of all goods produced

3. The total profits created from the sale of all goods produced.

4. The total resources costs of all goods produced

Criteria A

1 point

3. The marginal revenue product is the:

1. Change in total revenue resulting from the change of output produced from one worker

2. Change in total resource cost resulting from the hiring of one more additional worker

3. The total revenue minus the total resource cost.

4. The changes in revenue that occurs as one more unit is produced

Criteria A

1 point

4. The marginal resource cost is:

1. The change in selling price as one more unit is sold

2. The change in revenue as the output from one worker is sold

3. The cost of hiring all the workers used in the production of a product

4. The cost of hiring one more unit of input

Criteria A

1 point

5. The resource cost is the:

1. Selling price

2. Wage paid to the worker

3. A fixed cost

4. Profit from the sale of goods.

Criteria B

1 point

6. The profit maximizing rule for determining the most profitable:

1. Marginal revenue =Marginal cost rule

2. Marginal revenue product=marginal resource cost rule

3. Marginal revenue cost=wage rule

4. Marginal revenue price=marginal profit rule

Criteria B

1 point

7. The wage rate can be considered:

1. The resource cost

2. The factor cost

3. The product cost

4. A&B

Criteria D

1 point

8. Your aunt runs a small firm from her home making apple pies. She hires some friends to help her. Which of the following situations would most likely increase her demand for labor?

1. The price of apple peelers/corers rises.

2. Your aunt's friends gossip all day, slowing their dough making process.

3. There is a sale on ovens.

4. A new study reveals that apples increase your risk of cancer

Criteria C

1 point

9. The price of labor is $2 and the price of capital is $1. The marginal product of labor is 200 and the marginal product of capital is 50. What should the firm do?

1. Increase capital and decrease labor so that the marginal product of capital falls and the marginal product of labor rises.

2. Increase capital and decrease labor so that the marginal product of capital rises and the marginal product of labor falls.

3. Decrease capital and increase labor so that the marginal product of capital rises and the marginal product of labor falls.

4. Decrease capital and increase labor so that the marginal product of capital falls and the marginal product of labor rises.

5. Increase both capital and labor until the ratio of marginal products per dollar is equal.

Criteria B

1 point

10. A competitive labor market is currently in equilibrium. Which of the following most likely increases the market wage?

1. More students graduate with the necessary skills for this labor market.

2. Demand for the good produced by this labor is stronger.

3. The price of a complementary resource increases.

4. The Labor Department removes the need for workers to pass an exam before they can work in this field.

5. Over time, one large employer grows to act as a monopsonist