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