Tag: Economics Mcqs With Answers

(A) less than price at low levels of output and greater than price at high levels of output.
(B) always greater than price.
(C) lower than price for all units other than the first.
(D) always equal to price.

(A) the same as the slope of the demand curve.
(B) half as steep as the demand curve.
(C) twice as steep as the demand curve.
(D) always equal to one.

(A) the difference between total revenue and total costs.
(B) anything greater than the normal opportunity cost of investing.
(C) a rate of profit that is just sufficient to keep owners and investors satisfied.
(D) the opportunity costs of all inputs.

(A) total costs exceed normal profit.
(B) the firm is earning an economic profit.
(C) normal profit is zero.
(D) total costs exceed total revenue.

(A) is the rate of return on investments over the interest rate on risk-free government
bonds.
(B) is the rate that is just sufficient to keep owners or investors satisfied.
(C) Means zero return for owners or investors.
(D) is the difference between total revenue and total costs.

(A) there are no fixed factors of production.
(B) all firms must make economic profits.
(C) a firm can vary all inputs, but it cannot change the mix of inputs it uses.
(D) a firm can shut down, but it cannot exit the industry.

(A) long run.
(B) immediate run.
(C) intermediate run.
(D) short run.

(A) firms spend a large amount of money on advertising.
(B) profit margins are very high for both producers and retailers.
(C) there are a very large number of firms in the industry.
(D) there are many government health controls on cosmetic products.