Category: Economics Mcqs

(A) If AP is at a maximum, then MP is also.
(B) If TP is declining then AP is negative.
(C) If AP exceeds MP, then AP is falling.
(D) If AP = MP, then total product is at a maximum.

(A) increasing average fixed costs.
(B) decreasing marginal costs.
(C) decreasing average variable costs.
(D) increasing marginal costs.

(A) a period where the law of diminishing returns does not hold.
(B) at least one fixed factor of production, and firms neither leaving nor entering the
industry.
(C) all inputs being variable.
(D) no variable inputs – that is all of the factors of production are fixed.

(A) total variable costs only.
(B) both total variable costs and total costs.
(C) total costs only.
(D) total fixed cost only.

(A) The monthly rent on office space that it leased for a year.
(B) The franchiser’s fee that a restaurant must pay to the national restaurant chain.
(C) The interest payments made on loans.
(D) Workers’ wages.

(A) Fixed costs do not depend on the firm’s level of output.
(B) Fixed costs are zero if the firm is producing nothing.
(C) Fixed costs are the difference between total costs and total variable costs.
(D) There are no fixed costs in the long run.

(A) total revenue and total cost.
(B) marginal revenue and marginal cost.
(C) marginal revenue and average cost.
(D) total revenue and marginal cost.

(A) why a marginal dollar might have higher utility for a pauper than a millionaire
(B) why the total utility curve (in Utility-Income space) is convex
(C) why the average consumer is risk-averse
(D) all of the above