WorksheetsTheory of Cost and Economy System
Total questions: 20
Worksheet time: 11mins
From the theory of production, economic efficiency refers to _________________.
the combination of inputs that will maximize outputs.
the combination of inputs that involves minimal costs.
the combination of inputs that involves decreasing costs.
the combination of inputs that involves a constant cost.
Which statement of the following is true ?
AC=TFC – TVC
AC = AFC + TVC
AC=TFC + AVC
AC = AFC + AVC
per unit cost of a good is called:
fixed cost
variable cost
average cost
marginal cost
What is opportunity cost?
the value of the next best option that is not selected when a choice is made.
there is not enough of it.
things people make to earn money.
actions people do to earn money.
Which one of the following is correct?
(a) AFC = AVC + ATC
(b) ATC = AFC – AVC
(c) AVC = AFC + ATC
(d) AFC = ATC – AVC.
Fixed costs + variable costs =
Average costs
Fixed Costs
Total Cost
Marginal Cost
The cost of one thing in terms of the alternative given up is known as:
Production cost.
Physical cost.
Real cost.
Opportunity cost.
What is the primary goal of cost theory?
To maximize profit
To minimize expenses
To analyze and understand cost
To measure revenue
What is the best description of an economic system?
The physical infrastructure of a country
The organization of resources and distribution of goods and services in a society
The political system of a country
The religious beliefs of the population
Which of the following is not a type of economic system?
Capitalism
Communism
Autocracy
Socialism
One advantage of capitalism is:
Equal distribution of wealth
Government control over production
Incentive for innovation and entrepreneurship
Limited consumer choice
A disadvantage of capitalism is:
Efficient allocation of resources
Income inequality
Government intervention in the market
Employment stability
One advantage of socialism is:
Lack of government involvement in the economy
Equal distribution of wealth
Limited social welfare programs
Promotion of individual property rights
One advantage of a mixed economy is:
Limited government intervention in the market
Efficient allocation of resources
Coexistence of private and public ownership
Lack of consumer choice
A disadvantage of a mixed economy is:
Lack of social welfare programs
Excessive government control over production
Inefficient allocation of resources
Encouragement of monopolies
In which economic system does the government have minimal intervention in the market?
Capitalism
Socialism
Mixed
Communism
In which economic system does the government have significant control over production and distribution?I
Capitalism
Socialism
Mixed economy
Market economy
Which economic system promotes private ownership of property and free market competition?
Capitalism
Socialism
Mixed economy
Traditional economy
What is mixed economy systems?
