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Production

Total questions: 20

Worksheet time: 15mins

Name
Class
Date
1.

Land includes...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

the tools, equipment, and factories used in production of goods and services

c)

people with all their efforts and abilities

d)

individuals who start a new business or bring a product to market.

2.

Capital refers to...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

3.

Labor refers to...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

the tools, equipment, and factories used in production of goods and services.

d)

The "gifts of nature" or natural resources not created by human effort.

4.

Entrepreneurs are...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

The "gifts of nature" or natural resources not created by human effort.

d)

the tools, equipment, and factories used in production of goods and services

5.
A herd of cattle is an example of ...
a)
Land
b)
Labor
c)
Entrepreneur
d)
Capital
6.
Forests are examples of...
a)
Land
b)
Labor
c)
Entrepreneurs
d)
Capital
7.
Your garbage man is an example of
a)
Land
b)
Labor
c)
Entrepreneurs
d)
Capital
8.

the sum of fixed and variable costs

a)

total revenue

b)

marginal revenue

c)

marginal costs

d)

total costs

9.

costs that business owners incur no matter how much they produce

a)

variable

b)

fixed

c)

total

d)

marginal

10.

costs that depend on the level of production output

a)

total

b)

fixed

c)

variable

d)

marginal

11.

the extra cost of producing one more unit

a)

variable costs

b)

total costs

c)

marginal revenue

d)

marginal cost

12.

Which of the following is a variable cost in the short run?

a)

rent of the factory

b)

wages paid to factory workers

c)

interest payments on borrowed financial capital

d)

salaries paid to upper management

13.
Variable Cost/Quantity = _______
a)
Marginal Variable Cost
b)
Average Fixed Cost
c)
Average Variable Cost
d)
Marginal Total Cost
14.
The average fixed cost of producing 3 units of output is
a)
$8
b)
$7.40
c)
$5.50
d)
$6
15.

It is a period of time in which the the quantity of at least one input is fixed and the quantities of the other inputs can be varied.

a)

Long run

b)

Short run

c)

Long term

d)

Short term

16.

The marginal cost of production from 3 to 4 labors is _________.

a)

2

b)

7

c)

4

d)

8

17.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total cost?

a)

$25

b)

$225

c)

$375

d)

$750

18.
A firm is producing 100 units of output at a total cost of $400. The firm’s average variable cost is $3 per unit. What is the firm’s total fixed cost? 
a)
$100
b)
$1
c)
$300
d)
$50
19.
Assume that the fixed cost is $50. Based on the cost and output data in the table, what is the marginal cost when the firm increases its output from three to four units AND the average total cost of producing 4 units (respectively)? 
a)
MC=$35; ATC=$40
b)
MC=$35; ATC=$35
c)
MC=$25; ATC=$35
d)
MC=$25; ATC=$25
20.

Which curve is represented by A

a)

Marginal cost curve

b)

Average total cost curve

c)

Average fixed cost curve

d)

Average variable cost curve