#1
Which of the following is NOT a type of economic cost?
Opportunity cost
Accounting cost
Sunk cost
Monetary cost
#2
What is the formula for calculating total cost in economics?
Total Cost = Fixed Cost + Variable Cost
Total Cost = Marginal Cost / Quantity
Total Cost = Average Fixed Cost + Average Variable Cost
Total Cost = Marginal Cost * Quantity
#3
What is the primary goal of cost minimization in economics?
To maximize revenue
To minimize the total cost of production for a given level of output
To increase market share
To maximize profit
#4
Which of the following is an example of a fixed cost in the context of economics?
Cost of raw materials
Hourly wages for workers
Rent for factory space
Cost of electricity
#5
In economics, what is the formula for calculating average variable cost (AVC)?
AVC = Total Variable Cost / Quantity
AVC = Total Cost / Quantity
AVC = Total Variable Cost - Total Fixed Cost
AVC = Total Cost - Total Fixed Cost
#6
Which of the following is a characteristic of a monopolistic competition market structure?
Many firms selling identical products
A single firm selling a unique product
Firms have significant control over market price
There are no barriers to entry or exit
#7
What does the term 'marginal cost' refer to in economics?
The additional cost of producing one more unit of a good or service
The total cost of producing all units of a good or service
The cost incurred to start a business
The cost of production at the point where revenue equals cost
#8
What is the relationship between marginal cost and marginal benefit when optimizing economic decisions?
Marginal cost should exceed marginal benefit for optimal decision-making
Marginal benefit should exceed marginal cost for optimal decision-making
Marginal cost and marginal benefit are irrelevant in economic decision-making
Marginal cost and marginal benefit should be equal for optimal decision-making
#9
What is the main difference between explicit costs and implicit costs in economics?
Explicit costs are monetary payments, while implicit costs are opportunity costs
Implicit costs are monetary payments, while explicit costs are opportunity costs
Both explicit and implicit costs are monetary payments
Both explicit and implicit costs are opportunity costs
#10
Which of the following is a characteristic of a perfectly competitive market structure?
Firms can influence market price
There are no barriers to entry or exit
Products are highly differentiated
Firms have significant control over market price
#11
What is the relationship between average variable cost (AVC) and marginal cost (MC) when AVC is at its minimum?
AVC is equal to MC
AVC is greater than MC
AVC is less than MC
There is no relationship between AVC and MC
#12
What does the term 'economic profit' indicate in economics?
The total revenue minus total explicit costs
The total revenue minus total implicit costs
The total revenue minus total costs
The total revenue minus accounting profit
#13
In the context of economic optimization, what does the term 'diminishing marginal returns' indicate?
As more resources are added, the marginal cost decreases
The increase in output decreases as one input variable is increased, holding all others constant
Marginal benefit increases continuously with each additional unit of input
The cost of production decreases as the quantity produced increases
#14
What does the concept of 'economic efficiency' entail in economics?
Producing goods and services at the lowest possible cost
Producing goods and services at the highest possible cost
Achieving the optimal level of production where marginal cost equals marginal benefit
Achieving the optimal level of production where total cost equals total revenue
#15
In the context of economic costs, what does 'opportunity cost' refer to?
The explicit monetary cost of a decision
The potential benefit foregone of the best alternative when another alternative is chosen
The cost of production excluding fixed costs
The additional cost of producing one more unit of output
#16
In economics, what does the term 'diseconomies of scale' refer to?
The increase in output decreases as one input variable is increased, holding all others constant
The average total cost increases as output increases
The total revenue exceeds total costs
The cost per unit decreases as output increases
#17
What is the main difference between explicit and implicit costs in economics?
Explicit costs involve a monetary payment, while implicit costs do not
Implicit costs involve a monetary payment, while explicit costs do not
Both explicit and implicit costs involve monetary payments
Both explicit and implicit costs do not involve monetary payments