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