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 a recent test. Can anyone tell me if these are standard beginning h.s. econ questions?

Question

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.

Answer 1

I am wondering what your daughter's notes have in them. You can change her life and study habits, including having great notes that are included into the systematic study system here:

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This is a very good system, and will reduce your worries about college. This system takes work to form new habits.

My thoughts on your questions
1) The law of dimishing returns is not always true in the short run, and applies to many, many situations. Answer A.
2) Fixed cost has no influence on variable cost, has no influence on marginal cost, and has no influence on most profitable rate.
3) cost depends on output, is not linear, and goes up at the same rate as variable cost.

I am not an economist, so think out my reasoning.

Answer 2

Thank you for your advice. We'll sure look at those web sites.