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Questions and Answers
When are diminishing marginal returns to a factor of production most likely to occur?
When are diminishing marginal returns to a factor of production most likely to occur?
- One factor is increased and all others are fixed (correct)
- One factor is fixed and all others are increased in equal proportion
- All factors are increased in equal proportion
- One factor is decreased and all others are fixed
What is the increase in total cost associated with a one-unit increase in production?
What is the increase in total cost associated with a one-unit increase in production?
- Marginal cost (correct)
- Marginal revenue
- Marginal utility
- Marginal physical product
What is the opportunity cost of an investment in new farm equipment associated with?
What is the opportunity cost of an investment in new farm equipment associated with?
- The increase in farm income generated by the new equipment minus the costs of operating it
- The amount of income that new equipment will generate
- The income that could have been obtained by using the investment expenditure in its next most profitable activity (correct)
- The lost opportunity to spend more money on clothes and vacations
Which of the following is a variable cost?
Which of the following is a variable cost?
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What type of income is the money received from the sale of raised cull beef cows?
What type of income is the money received from the sale of raised cull beef cows?
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What is the purpose of liability insurance?
What is the purpose of liability insurance?
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What type of business would distribute patronage refunds?
What type of business would distribute patronage refunds?
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Which type of expenses would not be accounted for on an income statement?
Which type of expenses would not be accounted for on an income statement?
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What does an outward shift of the supply curve for peanuts NOT cause?
What does an outward shift of the supply curve for peanuts NOT cause?
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When using options, what is the futures price you want to fix?
When using options, what is the futures price you want to fix?
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