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Georgia Milestones: Understanding Production in Microeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. If a company is trying to determine a fair price for its goods, which of the following matters the most?

Question 2 2. Why are all costs associated with long-run production considered to be variable?

Question 3 3. Which of the following would be most useful in determining how much of a given resource to purchase in order to manufacture products for a given year?

Question 4 4. A contract to be completed in the next six months would be considered which of the following?

Question 5 5. _____ is the total amount produced per a set of resources.

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Question 6 6. At which point should a producer stop producing goods, according to the law of diminishing marginal returns?

Question 7 7. What is a util?

Question 8 8. Which of the following is NOT a good definition or example of short-run production?

Question 9 9. When would a price go below 0?

Question 10 10. What is the shape of a product curve?

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Question 11 11. Which of the following would be most useful in determining whether or not there are enough resources in storage to add additional production?

Question 12 12. Sandra is a veterinarian who is planning to start a new practice in Columbus, Ohio. Which of these is a variable cost of starting her business?

Question 13 13. Which business do you think would have the highest fixed cost?

Question 14 14. Which of these is a fixed cost?

Question 15 15. A decrease in average cost by 50% will result in an increase in profits of 50%, assuming that the decreased cost also increases efficiency. Why is this statement FALSE?

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Question 16 16. Which industry do you think would have the highest variable cost?

Question 17 17. What is the shape of a cost curve?

Question 18 18. According to the law of diminishing marginal returns, at which point is the price for a good the highest?

Question 19 19. Which of these is the total cost?

Question 20 20. Transitioning from baking to catering is considered which of the following?

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Question 21 21. Why does the variable cost curve rise quickly at first?

Question 22 22. Which company attempted to reduce their fixed costs at the River River plant and ended up with massive marginal costs?

Question 23 23. Accounting software for a bakery is:

Question 24 24. Which of the following is included in calculating long-run production?

Question 25 25. What is a long-run cost?

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Question 26 26. If you were going to sum up the main lesson of product curves, how would you best explain it?

Question 27 27. Which of these is a variable cost?

Question 28 28. Radio Shack is an example of a company doing which of the following?

Question 29 29. What is total cost?

Question 30 30. Sarah owns a factory that produces tin cans. A company puts in an order for twice as many cans as usual, but only for one month. Why might Sarah turn down this order?

Georgia Milestones: Understanding Production in Microeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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