Economics Chapter 4 Test

total product divided by the number of the workers employed

increase in average product attributable to the employment of one more worker

increase in total cost attributable to the employment of one more worker

increase in total output attributable to the employment of one more worker

an increase in total revenue attributable to the employment of one more worker

As successive amounts of one resource (labour) are added to fixed amounts of other resources, beyond some point the resulting extra output will decline

Population growth automatically adjusts to that level at which the average product per worker will be at a maximum

Because the large-scale production allows the realization of increasing returns to scale, the costs of production vary directly with the level of output

the same percentage increase in all inputs will result in a lower percentage increase in total output

increase in total cost attributable to the employment of one more worker

Marginal cost intersects average cost at the latter's minimum point

Average variable cost intersects marginal cost at the latter's minimum point

Average fixed cost intersects marginal cost at the latter's minimum point

Marginal cost intersects average fixed cost at the latter's minimum point

Average variable cost intersects average fixed cost at the latter's minimum point

output increases by greater percentage than an increase in inputs

a business uses exactly the same total amount of inputs

specialized machinery is used in production

making a product involves repeating exactly the same tasks every time the item is made

explicit costs refer to the nonexpenditure costs and implicit costs to out of pocket costs

explicit costs are relevant only in the short run

implicit costs are relevant only in the short run

explicit costs are relevant only in the long run

implicit costs refer to nonexpenditure costs and explicit costs to out of pocket costs

always in excess of a resource 's opportunity cost

an implicit cost to the resource owner who receives that payment

a payment made for resources not owned by the business itself

the only cost taken into account when economic profits are calculated

omitted when accounting profits are calculated

producing a given level of output when a process that minimizes costs

choosing to be capital-intensive at all times

using a balanced mix of inputs

choosing to be labour-intensive at all times

selecting the most efficient process of production given the price of each unit of output

average product must also be increasing

marginal product must also be increasing

marginal product must be decreasing

marginal product could be either increasing or decreasing

change in average variable cost that results from producing one more unit of output

change in total cost that results from producing one more unit of output

change in average cost that results from producing one more unit out output

change in average fixed cost that results from producing one more unit of output

rate of change in fixed costs that results from producing one more unit of output

an equal amount of labour, capital, and technology

less labour and less capital than other possible production processes

more capital and less labour than other possible production

more labour and more capital than other possible production

more labour and less capital than other possible production processes

the law of diminishing marginal returns no longer has the same importance in the short run

very few inputs can be adjusted

more variable inputs become fixed

business decisions become less efficient

output cannot be adjusted

in the long run, all resources are variable while in the short run, at least one resource is fixed

in the short run all resources are variable, while in the long run all resources are fixed

the law of diminishing marginal returns applies in the long run but not in the short run

fixed costs are more important to decision making in the long run than they are in the short run

in the short run all resources are fixed, while in the long run all resources are variable

property insurance premiums

shipping charges

expenditures for raw materials

wages for skilled workers

marginal cost must be less than average cost

marginal cost must be greater than average cost

the average fixed cost curve must lie above the average variable cost curve

the average fixed cost curve must lie below the average variable cost curve

total cost must also be declining

fuel and power payments

interest on bonds

rental payments on business's leased photocopying equipment

real estate taxes

the purchase price of machinery

declines so long as output increases

is intersected by marginal cost at its minimum point

may be found for any output by adding average variable cost and the average cost

graphs as U-shaped curve

explicit costs refer to the nonexpenditure costs and implicit costs to out of pocket costs

implicit costs are relevant only in the short run

explicit costs are relevant only in the short run

implicit costs refer to nonexpenditure costs and explicit costs to out of pocket costs

explicit costs are relevant only in the long run

office buildings

land available for cultivation

production plants

labour

machinery