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