MCQ Questions
Q.1.
$150,000.
  • 100%
    Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non labor resources are fixed.Refer to the data. Diminishing marginal returns become evident with the addition of the:
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    The following is cost information for the Creamy Crisp Donut Company:Entrepreneur's potential earnings as a salaried worker = $50,000Annual lease on building = $22,000Annual revenue from operations = $380,000Payments to workers = $120,000Utilities (electricity, water, disposal) costs = $8,000Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000Entrepreneur's forgone interest on personal funds used to finance the business = $6,000Refer to the data. Creamy Crisp's explicit costs are:
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    The total output of a firm will be at a maximum where:
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    The following is cost information for the Creamy Crisp Donut Company:Entrepreneur's potential earnings as a salaried worker = $50,000Annual lease on building = $22,000Annual revenue from operations = $380,000Payments to workers = $120,000Utilities (electricity, water, disposal) costs = $8,000Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000Entrepreneur's forgone interest on personal funds used to finance the business = $6,000Refer to the data. Creamy Crisp's implicit costs, including a normal profit, are:
Q.2.
explicit and implicit costs.
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    Economic profits are calculated by subtracting:
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    Which of the following is most likely to be a fixed cost?
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    Which of the following is a short-run adjustment?
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    To the economist, total cost includes:
Q.3.
Fuel and power payments.
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    Which of the following is most likely to be a fixed cost?
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    Which of the following is most likely to be a variable cost?
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    Which of the following is a short-run adjustment?
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    Which of the following best expresses the law of diminishing returns?
Q.4.
unit costs are minimized by having one firm produce an industry's entire output.
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    Marginal cost is the:
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    Marginal product:
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    Marginal product is:
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    A natural monopoly exists when:
Q.5.
it is encountering economies of scale.
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    If a firm increases all of its inputs by 10 percent and its output increases by 15 percent, then:
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    To economists, the main difference between the short run and the long run is that:
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    Implicit and explicit costs are different in that:
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    Which of the following is most likely to be a variable cost?
Q.6.
in the long run all resources are variable, while in the short run at least one resource is fixed.
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    Dis-economies of scale arise primarily because:
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    To economists, the main difference between the short run and the long run is that:
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    Which of the following best expresses the law of diminishing returns?
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    If a firm increases all of its inputs by 10 percent and its output increases by 15 percent, then:
Q.7.
the increase in total output attributable to the employment of one more worker.
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    Marginal product:
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    Marginal cost is the:
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    Normal profit is:
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    Marginal product is:
Q.8.
may initially increase, then diminish, and ultimately become negative.
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    Normal profit is:
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    Marginal cost is the:
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    Marginal product is:
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    Marginal product:
Q.9.
a money payment made for resources not owned by the firm itself.
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    An explicit cost is:
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    Fixed cost is:
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    Normal profit is:
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    Marginal cost is the:
Q.10.
relationship between resource inputs and product outputs in the short run.
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    Implicit and explicit costs are different in that:
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    The law of diminishing returns describes the:
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    The basic characteristic of the short run is that:
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    Which of the following is a short-run adjustment?
Q.11.
$136,000.
  • 0%
    The total output of a firm will be at a maximum where:
  • 0%
    Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non labor resources are fixed.Refer to the data. Diminishing marginal returns become evident with the addition of the:
  • 0%
    The following is cost information for the Creamy Crisp Donut Company:Entrepreneur's potential earnings as a salaried worker = $50,000Annual lease on building = $22,000Annual revenue from operations = $380,000Payments to workers = $120,000Utilities (electricity, water, disposal) costs = $8,000Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000Entrepreneur's forgone interest on personal funds used to finance the business = $6,000Refer to the data. Creamy Crisp's explicit costs are:
  • 0%
    The following is cost information for the Creamy Crisp Donut Company:Entrepreneur's potential earnings as a salaried worker = $50,000Annual lease on building = $22,000Annual revenue from operations = $380,000Payments to workers = $120,000Utilities (electricity, water, disposal) costs = $8,000Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000Entrepreneur's forgone interest on personal funds used to finance the business = $6,000Refer to the data. Creamy Crisp's implicit costs, including a normal profit, are:
Q.12.
any cost that does not change when the firm changes its output.
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    Fixed cost is:
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    Normal profit is:
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    An explicit cost is:
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    Marginal cost is the:
Q.13.
change in total cost that results from producing one more unit of output.
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    Marginal product is:
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    Normal profit is:
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    Marginal cost is the:
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    Marginal product:
Q.14.
Forgone rent from the building owned and used by Company X.
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    The law of diminishing returns describes the:
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    Which of the following is most likely to be a fixed cost?
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    Which of the following is most likely to be an implicit cost for Company X?
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    Which of the following best expresses the law of diminishing returns?
Q.15.
the former refer to non expenditure costs and the latter to monetary payments.
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    The basic characteristic of the short run is that:
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    Marginal product is:
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    Implicit and explicit costs are different in that:
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    Dis-economies of scale arise primarily because:
Q.16.
Q1Q3.
  • 0%
    In the diagram, the range of diminishing marginal returns is:
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    Which of the following is most likely to be a variable cost?
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    The total output of a firm will be at a maximum where:
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    To the economist, total cost includes:
Q.17.
As successive amounts of one resource (labor) are added to fixed amounts of other resources (capital), beyond some point the resulting extra or marginal output will decline.
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    Which of the following best expresses the law of diminishing returns?
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    Which of the following is most likely to be a fixed cost?
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    Which of the following is a short-run adjustment?
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    Which of the following is most likely to be a variable cost?
Q.18.
the firm does not have sufficient time to change the size of its plant.
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    The basic characteristic of the short run is that:
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    Dis-economies of scale arise primarily because:
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    Implicit and explicit costs are different in that:
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    The total output of a firm will be at a maximum where: