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