EconomicsOnline Test

Cost and Revenue Analysis

Cost and Revenue Analysis

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Question 1
Cost refers to ________
A
price
B
value
C
fixed cost
D
cost of production
Question 2
Cost functions are derived from _______________ function
A
production
B
investment
C
demand
D
consumption
Question 3
Money cost is also known as____________ cost
A
explicit
B
implicit
C
social
D
real
Question 4
Explicit cost plus implicit cost denote ___________ cost.
A
social
B
economic
C
money
D
fixed
Question 5
Explicit costs are termed as
A
out of pocket expenses
B
real cost
C
social cost
D
sunk cost
Question 6
The costs of self–owned resources are termed as ________ cost.
A
real
B
explicit
C
money
D
implicit
Question 7
The cost that remains constant at all levels of output is _______ cost.
A
fixed
B
variable
C
real
D
social
Question 8
Identify the formula of estimating average variable cost
A
TC/Q
B
TVC/Q
C
TFC/Q
D
TAC/Q
Question 9
The cost incurred by producing one more unit of output is______cost.
A
variable
B
fixed
C
marginal
D
total
Question 10
The cost that varies with the level of output is termed as _______ cost.
A
money
B
variable cost
C
total cost
D
fixed cost
Question 11
Wage is an example for ________ cost of the production.
A
fixed
B
variable
C
marginal
D
opportunity
Question 12
The cost per unit of output is denoted by _________ cost.
A
average
B
marginal
C
variable
D
total
Question 13
Identify the formula of estimating average cost.
A
AVC/Q
B
TC/Q
C
TVC/Q
D
AFC/Q
Question 14
Find total cost where TFC=I00 and TVC = 125
A
125
B
175
C
225
D
325
Question 15
Long-run average cost curve is also called as __________ curve.
A
demand
B
planning
C
production
D
sales
Question 16
Revenue received from the sale of products is known as _______ revenue
A
profit
B
total revenue
C
average
D
marginal
Question 17
Revenue received from the sale of additional unit is termed as ________ revenue.
A
profit
B
average
C
marginal
D
total
Question 18
Marginal revenue is the addition made to the
A
total sales
B
total revenue
C
total production
D
total cost
Question 19
When price remains constant, AR will be ________ MR.
A
equal to
B
greater than
C
less than
D
not related to
Question 20
A book seller sold 40 books with the price of Rs.10 each. The total revenue of the seller is Rs.___________.
A
100
B
200
C
300
D
400
Question 21
Profit = _______________
A
Total Revenue – Total Cost
B
Total Revenue + Total Cost
C
Total Revenue x Total Cost
D
Total Revenue / Total Cost
Question 22
Identify the formula of average fixed cost
A
TC/Q
B
TVC/Q
C
TFC/Q
D
TAC/Q
Question 23
Find total cost where TFC = 200 and TVC = 150
A
300
B
350
C
200
D
150
Question 24
Find total fixe cost where TC = 500 and TVC = 100
A
100
B
200
C
300
D
400
Question 25
Planning curve is also called as ___________
A
Envelop curve
B
Long run average cost curve
C
Group of short run average cost curve
D
All the above
Question 26
When AR remains constant MR is also _________
A
Constant
B
Greater
C
Lesser
D
None of these
Question 27
A shop keeper sold 20 bags with the price of Rs.100 each. The total revenue of the seller is Rs.________
A
200
B
20
C
2000
D
1500
Question 28
Find Total Variable Cost where TC = 200 and TFC = 50
A
50
B
150
C
200
D
250
Question 29
The functional relationship between cost and output is expressed as __________
A
Production function
B
Consumption function
C
Cost function
D
Distribution function
Question 30
A cost function may by written as _________
A
C = f (Q)
B
Y = S
C
C = f (Y)
D
TC/Q
Question 31
Production cost expressed in money terms is called __________
A
Real Cost
B
Money Cost
C
Sunk Cost
D
Opportunity Cost
Question 32
Adam Smith regarded pains and sacrifies of labour as ___________ of Production
A
Real Cost
B
Money Cost
C
Sunk Cost
D
Opportunity Cost
Question 33
Out of pocket cost is also called as _______
A
Real Cost
B
Money Cost
C
Sunk Cost
D
Opportunity Cost
Question 34
__________ is the summation of explicit and implicit costs.
A
Sunk Cost
B
Prime Cost
C
Economic Cost
D
Variable Cost
Question 35
Opportunity cost is also called as _________
A
Alternative Cost
B
Transfer Cost
C
Both ‘a’ and ‘b’
D
None of these
Question 36
____________is also called as ‘Retrospective Cost’
A
Floating
B
Sunk Cost
C
Economic Cost
D
Money Cost
Question 37
__________ cost is necessary to run the day-to-day business of a firm
A
Floating Cost
B
Sunk Cost
C
Fixed Cost
D
Variable Cost
Question 38
_________ = Variable Costs + Costs of Administration
A
Fixed Cost
B
Money Cost
C
Opportunity Cost
D
Prime Cost
Question 39
Fixed cost is also called as ______________
A
Supplementary Cost
B
Overhead Cost
C
Both ‘a’ and ‘b’
D
None of these
Question 40
Variable Cost is also called as ___________
A
Prime Cost
B
Special Cost
C
Direct Cost
D
All of these
Question 41
TC = __________
A
TFC + TVC
B
TFC – TVC
C
TFC x TVC
D
TFC / TVC
Question 42
AC = _____________
A
AFC – AVC
B
AFC + AVC
C
AFC x AVC
D
AFC / AVC
Question 43
Marginal Cost is = ___________
  • (a) TC n – TC n-1             (b) TC n + TC n-1             (c) TCn x TC n-1              (d) TCn / TCn-1
A
A
B
B
C
C
D
D
Question 44
MC curve is a _________ shaped curve
A
V’
B
‘L’
C
‘A’
D
‘U’
Question 45
TR = __________
A
P x Q
B
P + Q
C
P – Q
D
P / Q
Question 46
When MR is zero, the total revenue becomes ___________
A
Minimum
B
Maximum
C
Normal
D
Equal
Question 47
Find out profit, when TR = 55, TC = 30
A
20
B
35
C
25
D
80
Question 48
TR = TC is
A
Break Even Point
B
Loss
C
Profit
D
None of these
Question 49
Find out AFC, when AC = 100, AVC = 80
A
15
B
180
C
20
D
80
Question 50
Under perfect competition. The demand curve is
A
Upward sloping
B
Horizontal
C
Downward sloping
D
Vertical
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There are 50 questions to complete.

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