Chapter 13 - Multiple-Choice

Question 1

The main difference between economic profit in accounting profit is

Answer 1

B. Implicit costs

Question 2

Which one of the following would an economist say is the definition of the opportunity cost of an input used in production?

Answer 2

B. The benefit forgone by not using that input in its best alternative

Question 3

The sum of the marginal cost of all units produced is

Answer 3

D. Total variable cost

Question 4

Which one of the following explains when diminishing marginal product occurs

Answer 4

D. Whenever additional workers add less to output then did the workers who came before

Question 5

Which one of the following statements is true

Answer 5

C. If there are no fixed costs the average variable cost an average total cost are the same

Question 6

The relationship between factor inputs used in the production process of a good and the quantity of output of that good is called

Answer 6

C. The production function