Top 350+ Solved Micro Economics 1 MCQ Questions Answer

From 106 to 120 of 420

Q. _______ investigations examine an individual’s relationship with and interaction in society

a. Natural science

b. Physical science

c. Life science

d. Social science

  • d. Social science

Q. Implicit costs are:

a. Equal to total fixed costs.

b. Comprised entirely of variable costs.

c. "Payments" for self-employed resources.

d. Always greater in the short run than in the long run.

  • c. "Payments" for self-employed resources.

Q. Which would be an implicit cost for a firm? The cost:

a. Of worker wages and salaries for the firm.

b. Paid for leasing a building for the firm.

c. Paid for production supplies for the firm.

d. Of wages foregone by the owner of the firm.

  • d. Of wages foregone by the owner of the firm.

Q. If a firm's revenues just cover all its opportunity costs, then:

a. Normal profit is zero.

b. Economic profit is zero.

c. Total revenues equal its explicit costs.

d. Total revenues equal its implicit costs.

  • b. Economic profit is zero.

Q. Suppose a firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?

a. The firm will earn accounting and economic profits.

b. The firm will face accounting and economic losses.

c. The firm will face an accounting loss, but earn economic profits.

d. The firm may earn accounting profits, but will face economic losses.

  • d. The firm may earn accounting profits, but will face economic losses.

Q. The short run is a time period in which:

a. All resources are fixed.

b. The level of output is fixed.

c. The size of the production plant is variable.

d. Some resources are fixed and others are variable.

  • d. Some resources are fixed and others are variable.

Q. When the total product curve is falling, the:

a. Marginal product of labor is zero.

b. Marginal product of labor is negative.

c. Average product of labor is increasing.

d. Average product of labor must be negative

  • b. Marginal product of labor is negative.

Q. When marginal product reaches its maximum, what can be said of total product?

a. Total product must be at its maximum

b. Total product starts to decline even if marginal product is positive

c. Total product is increasing if marginal product is still positive

d. Total product levels off

  • c. Total product is increasing if marginal product is still positive

Q. Variable costs are:

a. Sunk costs.

b. Multiplied by fixed costs.

c. Costs that change with the level of production.

d. Defined as the change in total cost resulting from the production of an

  • c. Costs that change with the level of production.
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