(A) Specialization and division of labor
(B) Spreading the average fixed cost
(C) Limited capital
(D) All factors being variable in the long-run
Two curves that remain parallel as the quantity of output increases are:
(A) Total fixed cost and total variable cost.
(B) Total cost and total variable cost.
(C) Average fixed cost and average variable cost.
(D) Average total cost and average fixed cost.
Marginal product, mathematically, is the slope of the:
(A) Total product curve.
(B) Average product curve.
(C) Marginal product curve.
(D) Implicit product curve.
In the long run:
(A) All inputs are fixed.
(B) All inputs are variable.
(C) At least one input is variable and one input is fixed.
(D) At most one input is variable and one input is fixed.
In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences:
(A) Decreasing returns to scale.
(B) Constant returns to scale.
(C) Increasing returns to scale.
(D) Negative returns to scale.
An isoquant:
(A) Must be linear.
(B) Cannot have a negative slope.
(C) Is a curve that shows all the combinations of inputs that yield the same
total output?
(D) Is a curve that shows the maximum total output as a function of the level of labor
input?
The rate at which one input can be reduced per additional unit of the other input, while holding output constant, is measured by the:
(A) Marginal rate of substitution.
(B) Marginal rate of technical substitution.
(C) Slope of the isocost curve.
(D) Average product of the input.
Which country continues to top the list of the world’s most powerful passport?
(A) UAE
(B) Japan
(C) France
(D) Russia