Economics Basic Questions - User Guidew

Question: As output rises:

2. Question: When average total cost is declining, then:

3. Question: The law of diminishing returns:

4. Question: If fixed cost is $8,000, variable cost is $5,000 at an output of 2 and $9,000 at an output of 3, how much is marginal cost at an output of 3?

5. Question: Which statement is true?

6. Question: The average fixed cost curve:

7. Question: As a firm's output expands, the:

8. Question: Marginal cost may be defined as the __________ cost that results from producing one more unit of output.

9. Question: Which is most clearly a fixed cost?

10. Question: Fixed cost is sometimes referred to as __________ cost.

11. Question: Adam Smith noted each of the following economies of scale EXCEPT:

12. Question: Parkinson's Law is an example of:

13. Question: Which of the following is the most likely to be a variable cost?

14. Question: As long as there are __________ costs, we are in the short run.


15. Question: If price is between the break-even point and the shutdown point, in the long run the firm will:


16. Question: Adam Smith used a pin factory to demonstrate:


17. Question: When output is 0, total cost equals __________ cost.


18. Question: At an output of 1, marginal cost is:


19. Question: The law of diminishing marginal returns implies:


20. Question: Which of the following cost curves will NOT shift downward if the price of a variable input decreases?