AP ECON COSTS QUIZ Flashcards

1

What is included in economic costs?

Explicit costs
Implicit costs
Both implicit and explicit
Opportunity costs

2

What does the red line represent?

AFC
ATC
MC
ATC

3

What is the main goal for firms?

Better the economy
Solve the fundamental economic problem
To maximize profits
To provide goods and services to consumers

4

What is the accounting profit equation?

Total revenue-total implicit cost
Net income-total implicit costs
Net income-total explicit costs
Total revenue-total explicit cost

5

What happens to ATC when there are economies of scale?

ATC rises as Q increases
ATC stays the same as Q increases
ATC falls as Q increases
ATC falls as cost increases

6

What does the orange line represent?

ATC
AFC
AVC
MC

7

What does the green line represent?

AFC
AVC
ATC
MC

8

What factor of production can be changed in the short run?

Land
Labor
Capital
Entrepreneurship

9

What is another name for law diminishing marginal utility?

Law of diminishing marginal returns
Law of reducing returns
Law of Reducing marginal utility
Law of marginal returns

10

When do we see total cost decrese?

When marginal cost decreases
When variable costs increases
Rats
When there's not enough space for workers

11

What does MPL stand for?

Marginal price of labor
Marginal production of labor
Marginal product of labor
Milwaukee public library

12

What does the pink line represents?

Total costs
Marginal cost
Fixed costs
Variable costs

13

What does the purple line represents?

Total costs
Marginal cost
Fixed costs
Variable costs

14

What does the green line represents?

Variable costs
Total costs
Fixed costs
Marginal cost

15

Why does MC cross the ATC at this point?

Because of decreasing marginal returns
Law of averages
Because it overlaps at the bottom of the ATC curve
Because ATC starts to increase

AP ECON COSTS QUIZ

Questions 15

AP ECON COSTS QUIZ

Questions 15