#1
Which of the following is not a factor of production?
#2
What is the economic term for the combination of land, labor, capital, and entrepreneurship used to produce goods and services?
Production function
Resource allocation
Supply chain
Factors of production
#3
Which of the following is an example of a fixed cost in production?
Raw materials
Wages of temporary workers
Rent for factory space
Electricity bills
#4
In economics, what does the term 'productivity' refer to?
The rate at which a country's GDP grows
The efficiency with which resources are used to produce goods and services
The total output of a firm
The amount of money earned by a worker
#5
What does the term 'economies of scope' refer to in production?
When the average cost of production decreases as output increases
When a firm can produce a variety of goods at a lower cost than producing each separately
When the average cost of production remains constant regardless of output
When the average cost of production increases as output increases
#6
Which of the following best describes economies of scale?
When the average cost of production decreases as output increases
When the average cost of production increases as output increases
When the average cost of production remains constant regardless of output
When the average cost of production increases then decreases as output increases
#7
What is the concept of marginal product of labor in production?
The additional output produced by employing one more unit of labor
The total output produced by all units of labor
The average output produced by each unit of labor
The output produced by one unit of labor
#8
Which of the following is a characteristic of perfect competition in the market?
Many buyers and few sellers
Identical products sold by all firms
High barriers to entry for new firms
Firms have control over the market price
#9
What is the formula for calculating total cost in production?
Total Cost = Fixed Cost + Variable Cost
Total Cost = Fixed Cost - Variable Cost
Total Cost = Fixed Cost × Variable Cost
Total Cost = Fixed Cost ÷ Variable Cost
#10
What is the formula for calculating average variable cost in production?
Average Variable Cost = Total Variable Cost / Output
Average Variable Cost = Total Variable Cost - Output
Average Variable Cost = Total Variable Cost × Output
Average Variable Cost = Total Variable Cost ÷ Output
#11
What is the Law of Diminishing Marginal Returns?
As more units of a variable input are added to a fixed input, the marginal product of the variable input eventually decreases
As more units of a variable input are added to a fixed input, the total product increases proportionally
As more units of a fixed input are added to a variable input, the marginal product of the variable input decreases
As more units of a fixed input are added to a variable input, the total product increases at an increasing rate
#12
What is the concept of opportunity cost in production?
The cost of producing one more unit of a good or service
The total cost of production
The cost of the next best alternative foregone
The cost of inputs required for production
#13
Which of the following is an example of a variable cost in production?
Salaries of permanent employees
Insurance premiums
Property taxes
Cost of raw materials
#14
Which of the following is an example of a semi-variable cost in production?
Utilities
Depreciation of machinery
Salaries of permanent employees
Property taxes
#15
Which of the following is an example of a step fixed cost in production?
Rent for factory space
Cost of raw materials
Salaries of permanent employees
Utilities