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