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