18 Questions
What is another name for the Fixed-Proportions Production Function?
Leontief production function
In which situation does output more than double when all inputs are doubled?
Increasing Returns to Scale
What is the main characteristic of Constant Returns to Scale?
Output doubles when all inputs are doubled
Which cost type includes actual expenses and depreciation charges for capital equipment?
Accounting Cost
What is the Opportunity cost related to in a firm's operations?
Utilizing economic resources in production
Which type of cost considers all costs relevant to production, both explicit and implicit?
Economic Cost
What leads to lower income for a firm but is not recorded on the balance sheet?
Implicit Cost
In a scenario where output less than doubles when all inputs are doubled, which situation does this represent?
Decreasing Returns to Scale
Which situation cannot be substituted for among inputs in the fixed-proportions production function?
Increasing Returns to Scale
What is the term used for a cost that has no measurable cost to a firm?
Explicit Cost
In which situation does output less than double when all inputs are doubled?
Decreasing Returns to Scale
Which cost type includes all costs relevant to production, both explicit and implicit?
Economic Cost
What is the rate at which output increases as inputs are increased proportionally?
Returns to Scale
Which production function makes it impossible to make any substitute among inputs?
Fixed-Proportions Production Function
What is another term for the Leontief production function?
Fixed-Proportions Production Function
Which decision leads to lower income for a firm but is not recorded on the balance sheet?
Implicit Cost
What kind of cost is the cost of utilizing economic resources in production?
Economic Cost
What term describes the situation in which output more than doubles when all inputs are doubled?
Constant Returns to Scale
Learn about the fundamental concepts of economics including wealth, welfare, and scarcity. Explore the perspectives of influential economists such as Adam Smith, Alfred Marshall, Lionel Robbins, and Abraham Maslow on human needs and behavior.
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