A) The minimum level of production an economy can achieve B) The maximum level of production an economy can achieve C) The average level of production in an economy D) The level of production that is most efficient
A) As more input is added to production, the output will increase at an increasing rate B) As more input is added to production, the output will increase at a decreasing rate C) As more input is added to production, the output will increase at a constant rate D) As more input is added to production, the output will decrease
A) The total output produced by a firm or an economy B) The minimum level of productivity required for firms to stay in business C) The difference between total revenue and total cost D) The average level of productivity in an economy
A) The total revenue divided by the total cost B) The total output multiplied by the total number of units of input C) The total output divided by the total number of units of input D) The difference between total revenue and total cost
A) The additional output produced by adding one more unit of input B) The difference between total revenue and total cost C) The total revenue divided by the total cost D) The total output divided by the total number of units of input
A) Resources are fixed in quantity and quality B) The economy is operating at full employment C) Production is efficient and maximized D) Technology is constant
A) The law of variable marginal returns B) The law of diminishing marginal returns C) The law of increasing marginal returns D) The law of constant marginal returns
A) The cost of materials and labor needed for production B) The cost of land and capital equipment C) All of the above D) The cost of marketing and advertising
A) The difference between total revenue and total cost B) The cost of producing the last unit of output C) The total cost divided by the total number of units produced D) The cost of producing one additional unit of output
A) The cost of producing one additional unit of output B) The cost of producing the last unit of output C) The total cost divided by the total number of units produced D) The difference between total revenue and total cost
A) The law of diminishing marginal returns applies to production B) Resources are fixed in quantity and quality C) The economy is operating at full employment D) Technology is constant
A) As more input is added to production, the output will remain constant B) As more input is added to production, the output will increase at an increasing rate C) As more input is added to production, the output will increase at a constant rate D) As more input is added to production, the output will increase at a decreasing rate
A) Labor B) Capital C) Money D) Land
A) The ratio of resources used in production B) The different combinations of goods an economy can produce with limited resources C) The historical record of production in an economy D) The trade-offs that occur when an economy produces two goods
A) The process of creating goods and services B) The process of selling goods and services C) The process of saving and investing money D) The process of consuming goods and services
A) The monetary value of resources used in production. B) The expenses incurred to produce a product or service. C) The total expenses minus the revenue generated from sales. D) The amount that needs to be paid to suppliers and employees.
A) The monetary value of resources used in production. B) The total expenses incurred to produce a product or service. C) The amount that needs to be paid to suppliers and employees. D) The amount of money spent on advertising and marketing.
A) Wages of production workers B) Energy consumption C) Raw materials D) Rent for a production facility
A) The cost of producing one unit of a product B) The cost of marketing and advertising C) The cost of raw materials only D) The sum of fixed cost and variable cost
A) Cost of raw materials B) Salary of the production manager C) Rent for a production facility D) Depreciation of machinery
A) The difference between total cost and variable cost B) The ratio of total fixed cost to the quantity of output C) The sum of fixed cost and variable cost D) The cost of producing one additional unit of a product
A) The difference between total cost and variable cost B) The sum of fixed cost and variable cost C) The ratio of total variable cost to the quantity of output D) The cost of producing one additional unit of a product
A) The cost of producing one additional unit of a product B) The difference between total cost and variable cost C) The sum of fixed cost and variable cost D) The ratio of total fixed cost to the quantity of output
A) MC is always lesser than AVC B) MC is always greater than AVC C) MC is inversely related to AVC D) MC and AVC are equal at all levels of output
A) Marginal Cost (MC) B) Variable Cost (VC) C) Average Fixed Cost (AFC) D) Fixed Cost (FC)
A) AVC decreases B) AVC remains constant C) AVC becomes zero D) AVC increases
A) Average Fixed Cost (AFC) B) Variable Cost (VC) C) Marginal Cost (MC) D) Total Cost (TC)
A) Total Cost (TC) B) Fixed Cost (FC) C) Variable Cost (VC) D) Average Fixed Cost (ACF)
A) Total Cost (TC) B) Marginal Cost (MC) C) Average Variable Revenue (AVR) D) Average Fixed Cost (AFC)
A) AFC = FC / Output B) AFC = TC / VC C) AFC = VC / Output D) AFC = TC / FC
A) The profit earned from a business venture B) The total amount of money earned from selling goods and services C) The cost incurred to produce goods and services D) The amount of money paid to suppliers and workers
A) Profit B) Break-even C) Investment D) Loss
A) Rent for a factory B) Wages for temporary workers C) Raw materials D) Advertising expenses
A) Loan repayments B) Depreciation on machinery C) Electricity bills D) Insurance premiums
A) Total cost divided by profit B) Number of units sold multiplied by price per unit C) Number of units sold divided by price per unit D) Total cost minus profit
A) The revenue earned from fixed costs only B) The total revenue earned from all sales C) The revenue earned from each unit sold D) The revenue earned from variable costs
A) Subtracting total cost from total revenue B) Dividing change in total revenue by change in quantity sold C) Multiplying total revenue by price per unit D) Comparing total revenue to average revenue
A) Decrease production B) Maintain the current level of production C) Increase production D) Raise prices
A) Incurs a loss B) Expands its product range C) Makes a profit D) Breaks even
A) The revenue earned from a single unit of a product B) The revenue earned from all sales of a product C) The revenue earned from variable costs only D) The revenue earned from fixed costs only
A) The number of workers employed B) The price of raw materials C) The amount of profit earned D) The number of units produced
A) Paying salaries to workers B) Research and development of new products C) Training programs for employees D) Marketing and advertising campaigns
A) Decreased consumer demand B) Increased competition C) Rising variable costs D) Higher fixed costs
A) The level that covers only variable costs B) The level that covers only fixed costs C) The level that covers total costs D) The most competitive price in the market
A) Interest earned from investments B) Sales of agricultural produce C) Rental income from real estate D) Fees charged by a law firm
A) The organization of production, distribution, and consumption of goods and services in a society B) The educational system of a country C) The political system of a country D) The physical infrastructure of a country
A) Mixed economy B) Market economy C) Traditional economy D) Command economy
A) Inequality B) Lack of stability C) Overreliance on technology D) Slow economic growth
A) Limited role of private enterprise B) Competition and consumer choice C) Extensive government control over production and distribution D) Price determination by central planners
A) Government B) Private individuals and businesses C) Local communities D) International organizations |