Screening Tests (E

question 73

Multiple Choice

Screening tests (e.g., AIDS testing) are evaluated on the probability of a false negative or a false positive, and both of these are:

• A) conditional probabilities
• B) probability of the intersection of two events
• C) probability of the union of two events
• D) marginal probabilities
• E) probability of dependent events

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Definitions:

Total Variable Cost

The total of expenses that vary directly with the level of production, such as raw materials and direct labor.

Marginal Product

The additional output resulting from the use of one more unit of a production input, keeping other inputs constant.

AVC

Average Variable Cost, which is the total variable costs divided by the quantity of output produced.

ATC

A restated definition for Average Total Cost; it implies the cost per unit produced when both fixed and variable costs are accounted for across all levels of output.