Older MCQs might not have the typical A, B, C,
D
choices. They
have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such
combinations to the answer.
A
1, 2 and 3 are correct
B
1 and 2 only are correct
C
2 and 3 only are correct
D
1 only is correct
Definition and examples of opportunity cost in different contexts.
Total cost (TC), average total cost (ATC), fixed cost (FC), variable cost (VC), average fixed cost (AFC), average variable cost (AVC). Calculation of TC, ATC, FC, VC, AFC and AVC. Definition, drawing and interpretation of diagrams that show how changes in output affect costs of production. Total revenue (TR) and average revenue (AR). Calculation of TR and AR. The influence of sales on revenue. Survival, social welfare, profit maximisation and growth. Note: marginal cost is not required. Note: marginal revenue is not required.
Definition and examples of the economic problem in the contexts of: consumers; workers; producers; and governments. The difference between economic goods and free goods.
