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Demand, Supply, and Prices Quiz 3

Total questions: 14

Worksheet time: 11mins

Name
Class
Date
1.

The change in output that results from hiring one additional unit of labor.

a)

marginal product of labor

b)

increasing marginal returns

c)

diminishing marginal returns

d)

fixed cost

2.

The level of production in which the marginal product of labor increases as the number of workers increases.

a)

marginal product of labor

b)

increasing marginal returns

c)

diminishing marginal returns

d)

fixed cost

3.

The level of production in which the marginal product of labor decreases as the number of workers increases.

a)

marginal product of labor

b)

increasing marginal returns

c)

diminishing marginal returns

d)

fixed cost

4.

A cost that does not change no matter how much of a good or service in produced.

a)

marginal product of labor

b)

increasing marginal returns

c)

diminishing marginal returns

d)

fixed cost

5.

A cost that rises or falls depending on the quantity produced.

a)

variable costs

b)

total cost

c)

marginal cost

d)

marginal revenue

6.

The sum of fixed costs and variable costs.

a)

variable costs

b)

total cost

c)

marginal cost

d)

marginal revenue

7.

The extra cost of adding one unit.

a)

variable costs

b)

total cost

c)

marginal cost

d)

marginal revenue

8.

The additional income from selling one more unit of a good or service, sometimes equal to price.

a)

variable costs

b)

total cost

c)

marginal cost

d)

marginal revenue

9.

The most desirable alternative given up the result of a decision.

a)

marginal revenue

b)

operating cost

c)

average cost

d)

negative marginal return

10.

Total cost divided by quantity produced.

a)

marginal revenue

b)

operating cost

c)

average cost

d)

negative marginal return

11.

When the addition of a unit of labor actually reduces total output.

a)

marginal revenue

b)

operating cost

c)

average cost

d)

negative marginal return

12.

A government payment that supports a business or market.

a)

negative marginal return

b)

subsidy

c)

excise tax

d)

regulation

13.

A tax on the production or sale of a good.

a)

negative marginal revenue

b)

subsidy

c)

excise tax

d)

regulation

14.

Government intervention in a market that affects the production of a good.

a)

negative marginal revenue

b)

subsidy

c)

excise tax

d)

regulation