1. If bread is produced by using a constant returns to scale production function, then if the: A) number of workers is doubled, twice as much bread will be produced. B) amount of equipment is doubled, twice as much bread will be produced. amounts of equipment and workers are both doubled, twice as much bread will be produced. DJ amounts of equipment and workers are both doubled, four times as much bread will be produced. 2. When factor supply is fixed and quantity of the factor is graphed on the horizontal axis while factor price is graphed on the vertical axis, the factor: A) supply curve is horizontal. B) supply curve is vertical. C ) supply curve slopes up to the right. DJ demand curve slopes up to the right. 3. If Y = AKO.510.5 and A, K, and L are all 100, the marginal product of capital is: A) 50. B) 100. 200. D) 1000. 4. If the production function describing an economy is Y= 100 K-25175, then the share of output going to labor: A) is 25 percent. B) is 75 percent. C) depends on the quantities of labor and capital. D) depends on the state of technology. 5. Assume that the consumption function is given by C = 200 + 0.7(Y - T), the tax function is given by T = 100 + tiY, and Y = 50K0.510.5, where K = 100 and L = 100. If ti increases from 0.2 to 0.25, then consumption decreases by: A) 70. B) 140. 175. D) 250