CMA Foundation MCQ Quiz Economics Lesson 1.5 – Part 1April 9, 2026 Maven Leave a Comment Welcome to the CMA Foundation MCQ Quiz Economics Lesson 1.5 - Part 1 quiz! Name Email 1. The concept of real cost was introduced by: Alfred Marshall J.M. Keynes Adam Smith H.H. Gossen None 2. Economic cost is equal to: Explicit cost + Implicit cost Explicit cost + Normal profit Explicit cost + Implicit cost + Normal profit Implicit cost + Normal profit None 3. Actual money payments made by a firm for purchasing or hiring resources are called: Implicit costs Opportunity costs Social costs Explicit costs None 4. Which of the following is an example of implicit cost? Interest on own capital invested in the business Payment for raw materials Wages paid to workers Rent paid for a building None 5. Opportunity cost is best defined as: The value of the next best alternative foregone The total cost of production The minimum profit needed to stay in business The cost of hiring additional labour None 6. Which of the following is an example of a fixed cost? Raw materials Fuel and power Daily wages Insurance premium None 7. Total variable cost when output is zero is: Equal to total fixed cost Positive Zero Negative None 8. The total fixed cost curve is: Upward sloping from origin Downward sloping from left to right Horizontal parallel to X axis U shaped None 9. Average fixed cost is calculated as: TVC ÷ Q TC ÷ Q TFC ÷ Q MC ÷ Q None 10. The shape of the average fixed cost curve is: U shaped Upward sloping Horizontal line Rectangular hyperbola None 11. Marginal cost is defined as: Total cost divided by number of units of output Additional cost to produce one more unit of output Fixed cost divided by number of units of output Total variable cost divided by number of units of output None 12. The MC curve cuts the AC curve at: The maximum point of AC The minimum point of AC The maximum point of MC The point where AC equals AFC None 13. When MC is less than AC: AC is rising AC is constant AC equals MC AC is falling None 14. The long run average cost curve is also called: Variable cost curve Marginal cost curve Planning curve and envelope curve Fixed cost curve None 15. The shape of the LAC curve is: L shaped Horizontal line Rectangular hyperbola U shaped None Time's upRelated Posts:CMA Foundation MCQ Quiz Economics Lesson 1.3 - Part 1CMA Foundation MCQ Quiz Economics Lesson 1.3 – Part 2CMA Foundation MCQ Quiz Economics Lesson 1.3 – Part 3CMA Foundation MCQ Quiz Economics Lesson 1.3 – Part 4
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