Economics Quiz on Technology and Costs

What is a technological change in economics?

• Increase in the number of workers

• Change in the production process that increases output

• Decrease in input costs

• Increase in product price

Which of the following is an example of technological change?

• Hiring more workers

• Using robots instead of manual labor

• Leasing new buildings

• Increasing advertising spending

Technological advancement typically:

• Raises the marginal cost of production

• Shifts the average total cost curve upward

• Increases output with the same amount of inputs

• Decreases labor productivity

The introduction of automation in a factory is:

• A capital increase

• A technological change

• A supply shift

• A marginal cost

Technological change results in:

• Higher fixed costs

• Less efficient production

• A new production function

• Increased prices

In the short run:

• All factors of production are variable

• Firms can enter or exit the industry

• At least one input is fixed

• There is no cost

The long run is defined as a period in which:

• Marginal cost equals price

• Firms are not making profits

• All inputs are variable

• Output is constant

Fixed costs are relevant in:

• Both short run and long run

• Only in the short run

• Only in the long run

• Neither

In the long run, a firm can:

• Only increase labor

• Not change plant size

• Vary all inputs

• Have constant marginal cost

Which of the following is true about the economic short run?

• Firms face no fixed costs

• Technology changes

• At least one factor of production is fixed

• All costs are variable