INTRODUCTION: MANAGERIAL ECONOMICS

The most fundamental economic problem is

• Security

• Health

• Scarcity

Which term describes the money left over after all costs of production have been paid ?

• Revenue

• Marginal expense

• Profit

• Loss

Which term do economists use to describe the alternative you face if you decide to do one thing instead of another?

• Trade-off

• Marginal cost

• Marginal benefit

• Measure of cost

Which of the following best describes an opportunity cost?

• The additional cost of producing one additional unit of output.

• An individual goes to the movies and decides to buy popcorn.

• The real price of items increases as the value of money decreases.

• An individual pays for guitar lesson instead of going to the movies.

Which of the following terms refers to the extra or additional cost of producing one additional unit of output?

• Total cost

• Variable cost

• Fixed cost

• Marginal cost