Welcome to your Grade 10 Economics chapter 3
After carefully reading the following 30 questions, choose the correct answer.
1.
What shows the maximum quantity of a commodity that can be produced with given inputs?
2.
Total Product (TP) refers to:
3.
What is defined as output per unit of the variable factor?
4.
Marginal Product (MP) is the change in total product resulting from:
5.
Which law states that adding more of one factor while others are fixed will eventually yield lower per unit returns?
6.
Diminishing returns occur in which time frame when one factor is fixed?
7.
What shifts the production function upward?
8.
Total cost in the short run is divided into:
9.
Which costs are constant regardless of the level of output?
10.
Can a firm avoid fixed costs by producing zero levels of output?
11.
Costs that vary directly with the level of output are called:
12.
How do you obtain Average Cost (AC)?
13.
What shape do short-run AC and AVC curves usually assume?
14.
The U-shape of AC and AVC curves is due to:
15.
What are additional costs incurred to produce one more unit?
16.
The short-run marginal cost curve is a mirror reflection of which product curve?
17.
In the long run, which inputs are variable?
18.
Returns to a factor refers to output change when:
19.
Short-run average variable cost is the mirror reflection of:
20.
Production cost depends on which of the following?
21.
The choice of inputs in the long run depends on:
23.
Total Variable Cost divided by quantity equals:
24.
When TP is increasing at a decreasing rate, MP is:
25.
In the production process, adding more of a variable input eventually yields:
26.
Fixed costs are incurred even when output is:
27.
Short-run marginal cost curve is:
28.
If a firm increases its quantity of production, what happens to its total variable cost?
29.
What is the term for output per unit of input?
30.
Which of the following is a fixed input in the short run?
