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