My daughter is a sophomore in high school taking an econ class. Unfortunately, the teacher has chosen not to use the assigned text book, and uses other material for his tests. Therefore, I can't help her study the text. These questions were part of the review for today's test. Can anyone tell me if these are standard beginning h.s. econ questions?
1. The law of diminishing returns (A) is the same as the law of variable proportions; (B) is always true in the short run; (C) only applies to a situation in which some of the input factors are fixed; (D)all of the above; (E)none of the above.
2. Fixed cost (A) has some influence on variable cost; (B) has no influence on marginal cost; (C) has no influence on the most profitable rate of output; (D) all of the above; (E) none of the above.
3. Total cost (A) increases as output increases; (B) is a positive but not a linear function of output and sales; (C) goes up at the same rate as the variable cost goes up; (D) all of the above; (E) none of the above.
These questions were on a paper headed: "Chapter 21 - Short-Run Analysis: How Efficiency Changes as Output Changes."
Thanks for your help.
These questions appear to be related to the topic of short-run analysis and efficiency in economics, specifically related to the concepts of the law of diminishing returns, fixed cost, and total cost.
To answer these questions, you can follow these steps:
1. Understand the concepts:
a. Law of diminishing returns: This principle states that as more units of a variable input are added to a fixed input, the marginal output will eventually decrease.
b. Fixed cost: These are costs that do not change with changes in the level of production or output.
c. Total cost: The sum of fixed costs and variable costs incurred in producing a certain level of output.
2. Analyze each question:
a. Question 1 is asking about the law of diminishing returns. Determine whether it is the same as the law of variable proportions, always true in the short run, or only applies to situations with fixed input factors.
b. Question 2 is about the influence of fixed costs on variable costs and marginal costs, as well as the most profitable rate of output.
c. Question 3 relates to the relationship between total cost and output, whether it increases as output increases, is a positive but not linear function of output and sales, or goes up at the same rate as variable cost.
3. Evaluate the answer choices:
a. For each question, carefully read the answer choices provided (A, B, C, D, E), and eliminate any that are clearly incorrect or contradict the concepts you understood.
b. Once you have narrowed down the options, select the most accurate answer based on your understanding of the concepts involved.
It is important to note that the difficulty level of these questions can vary depending on the curriculum and teaching methods of the specific high school. However, the concepts being tested (law of diminishing returns, fixed cost, total cost) are commonly covered in introductory economics courses.