Mastery Exam On Microeconomics

21 Questions | By Jrgf_blu | Updated: Mar 22, 2022 | Attempts: 1205

Questions

Settings

Create your own Quiz

Questions and Answers

1.

Explain the difference between economies of scale from diseconomies of scale. (10 points )
2.

What refers to all expenses acquired during the economic activity or production of goods and services, which includes expenditures incurred for the utilization of the various factors of production in the creation of goods?
3.

What refers to the opportunity cost that involves a monetary payment or some other form of compensation?
4.

What type of a firm that has a legal entity on its own it is separate and distinct from its owners?
5.

What type of an economic decision-maker that plays the starring role in a market economy?
6.

What refers to the accumulated when firms change production levels over time in response to expected economic profits or losses?
7.

What types of cost which are incurred on variable factor inputs?
8.

What refers to the cost that does not vary as output varies and that must be paid even if the output is zero?
9.

What refers to the per-unit total that includes all fixed costs and all variable costs?
10.

What refers to the simplest business entity and the easiest to form or put up?
11.

What refers to the type of business entity are not organized for profit but to make its members individually profitable or save money ?
12.

Which of the following is NOT an example of the uses of the personal income of a household?
- A.
  
  Savings
- B.
  
  Investment
- C.
  
  Consumption
- D.
  
  Taxes
13.

Which of the following is NOT an example of an explicit cost?
- A.
  
  Rent
- B.
  
  Wages
- C.
  
  Depreciation cost of machinery
- D.
  
  Payment of materials
14.

What refers to the cost of producing one extra unit of output, it can be found by calculating the change in total cost when one unit is increased?
- A.
  
  Marginal cost
- B.
  
  Explicit costs
- C.
  
  Implicit costs
- D.
  
  Opportunity cost
15.

What is the formula to calculate the average variable cost?
- A.
  
  It is the total fixed cost divided by the quantity of output produced.
- B.
  
  It is the total variable cost divided by the number of units of output.
- C.
  
  It is the fixed cost added the variable cost
- D.
  
  It is the total revenue minus its total cost
16.

Which of the following is an example of a sunk cost?
- A.
  
  Depreciation cost of machinery
- B.
  
  Advertising and marketing materials used by the company
- C.
  
  Wages or salaries to the workers
- D.
  
  Rent of the company
17.

The formula to calculate the average variable cost is the total variable cost divided by the number of variable costs.
- A.
  
  True
- B.
  
  False
18.

The economist views the revenue of a firm is based on economic profit + accounting profit.
- A.
  
  True
- B.
  
  False
19.

The most effective way in eliminating fixed costs in a firm is reducing the output of a factory to zero, by shutting down its operations.
- A.
  
  True
- B.
  
  False
20.

Unlimited liability is not an advantage of a sole proprietorship business.
- A.
  
  True
- B.
  
  False
21.

The production function shows the relationship between quantity of inputs and quantity of output.
- A.
  
  True
- B.
  
  False