1.When a production function shows initially rising marginal product followed by diminishing marginal product as output grows, how will the marginal cost curve behave?
2.What happens to the average total cost when marginal cost is less than the average total cost?
3.Which of the following statements accurately describes cost behavior over time?
4.How does the slope of a production function change when it demonstrates diminishing marginal returns?
5.Naila runs a small pottery business producing 1,000 items annually, each sold at Rs 100. The raw materials cost her Rs 20,000 for these 1,000 pieces. She has invested Rs 100,000 in the factory and equipment, half from her own savings and half borrowed at an interest rate of 10%. (Assume she could have alternatively invested her own money elsewhere at 10% interest.) Additionally, Naila has the option to work at another pottery factory earning Rs 40,000 per year. What is the economic profit from Naila's pottery business?
6.Economic profit is calculated by subtracting which type of costs from total revenue?
7.At what output level is production most efficient by minimizing which cost?
8.Over the long term, if a very small factory increases its production size, what is it most likely to encounter at the start?
9.What happens to the average total cost when marginal cost is equal to average total cost?
10.In the short term, which of the following expenses varies directly with production levels?
11.When a production function shows diminishing marginal returns, how does the slope of the total cost curve change as output rises?
12.What happens to accounting profit compared to economic profit when there are implicit production costs?
13.Naila runs a small pottery business producing 1,000 pottery items annually, each sold for Rs 100. The raw materials cost her Rs 20,000 to produce these items. She has invested Rs 100,000 in her factory and equipment—half from her own savings and half borrowed at an interest rate of 10%. (Assume she could have alternatively invested her savings elsewhere at 10%.) Additionally, Naila has the option to work at another pottery factory earning Rs 40,000 per year. What is the accounting profit of Naila's pottery business?
14.Accounting profit is calculated by subtracting which type of costs from total revenue?
15.Which of the following statements accurately describes the United States' total official development assistance (ODA) to developing nations?
16.According to Harvard's Dani Rodrik, what does globalization primarily entail?
17.Between the 1960s and 1980s, why did the United States experience a decline in both real food aid and food reserves?
18.How do Carmen Reinhart and Kenneth Rogoff account for the paradox of capital flowing from poorer to wealthier nations?
19.Some economists and policymakers in developing nations argue that multinational corporations (MNCs) negatively impact these countries because they:
20.In what ways can multinational corporations (MNCs) contribute to the development of a developing nation?