STRUCTURE QUESTION 1. Opportunity cost best defined as.. 2. List the factor of production 3. A basic characteristic of a command system is that.. 4. A recession is .............. 5. GDP is ......" 6. The purchase and sale of government securities by Federal Bank is called ... 7. The Federal bank could reduce the money supply bt .. 8. What is the major difference between the long run and the short run in pure competition? Explain in terms of the number of firms and the flexibility of firms. 9. How would you describe the demand curve for the purely competitive firm? For the industry? 10. What is the difference between average, total, and marginal revenue? What is the shape of the total and marginal revenue curves for the individual competitive firm? 11. The table below shows the total production of a firm as the quantity of labor employed increases. The quantities of all other resources employed are constant. Compute the marginal and average products and enter them in the table. Marginal Average Inputs Total product product of labor product of labor of labor 0 0 W N H 40 100 165 200 5 225 240 245 240 111 (a) At what levels are there increasing returns to labor and at what levels are there decreasing returns to labor? (b) Describe the relationship between the total product and marginal product. (c) Describe the relationship between marginal and average product