Question 1

Team production is a production process in which

Accepted Answer

A) an assembly line is used. 
B) individuals rotate from one task to another. 
C) competing groups perform identical tasks. 
D) individuals specialize in mutually supportive tasks. 
E) pay is based on group output. 
A) an assembly line is used. 
B) individuals rotate from one task to another. 
C) competing groups perform identical tasks. 
D) individuals specialize in mutually supportive tasks. 
E) pay is based on group output.

Question 2

Where the Herfindahl-Hirschman Index is less than 1,000, the market is regarded as

Accepted Answer

A) a monopoly. 
B) an oligopoly. 
C) competitive. 
D) regulated. 
E) none of the above 
A) a monopoly. 
B) an oligopoly. 
C) competitive. 
D) regulated. 
E) none of the above

Question 3

Use the information below to answer the following questions.
Fact 10.3.1 Executive Pay
Executive compensation, based on performance, can theoretically constrain pay, but companies are paying their top executives more and more. The median compensation of a CEO in 2013 was $13.9 million, up 9 percent from 2012
Source: CNBC, April 28, 2014
-Refer to Fact 10.3.1. Paying executives with stock will

Accepted Answer

A) discourage the CEO. 
B) decrease CEO compensation and make them work harder. 
C) tie the CEO's compensation to the company's fortunes. 
D) limit the size of corporations. 
E) increase the size of corporations. 
A) discourage the CEO. 
B) decrease CEO compensation and make them work harder. 
C) tie the CEO's compensation to the company's fortunes. 
D) limit the size of corporations. 
E) increase the size of corporations.

Question 4

Use the table below to answer the following questions.
Table 10.2.2
Three methods of making one medical hologram
  
-Refer to Table 10.2.2. If the price of labour is $20 per unit and the price of capital is $10 per unit, which method is economically efficient?

Accepted Answer

A) 1 only 
B) 2 only 
C) 3 only 
D) 2 and 3 only 
E) 1 and 3 only 
A) 1 only 
B) 2 only 
C) 3 only 
D) 2 and 3 only 
E) 1 and 3 only

Question 5

The Herfindahl-Hirschman Index (HHI)for a local water supplier is

Accepted Answer

A) less than 100. 
B) between 101 and 999. 
C) more than 1,000 but less than 2,000. 
D) 10,000. 
E) between 2,000 and 5,000. 
A) less than 100. 
B) between 101 and 999. 
C) more than 1,000 but less than 2,000. 
D) 10,000. 
E) between 2,000 and 5,000.

Question 6

Use the table below to answer the following questions.
Table 10.4.1
  
-Refer to Table 10.4.1. The four-firm concentration ratio for the pizza sellers is

Accepted Answer

A) 40 percent. 
B) 100 percent. 
C) 80 percent. 
D) 33 percent. 
E) 12.5 percent. 
A) 40 percent. 
B) 100 percent. 
C) 80 percent. 
D) 33 percent. 
E) 12.5 percent.

Question 7

A group of business people are having coffee. Which of the following quotations describes transactions costs?

Accepted Answer

A) "The new production process we've installed uses less capital and labour than the old one." 
B) "The new assembly line has higher capital costs, but the fall in workers' hours has lowered overall costs." 
C) "The costs of per-unit production have fallen dramatically as we have increased the length of the production runs." 
D) "Despite the higher costs of negotiating the contracts, hiring the cleaning firm is much cheaper than using our own staff." 
E) "The computer servicing people we have hired work very well as an integrated problem-solving group." 
A) "The new production process we've installed uses less capital and labour than the old one." 
B) "The new assembly line has higher capital costs, but the fall in workers' hours has lowered overall costs." 
C) "The costs of per-unit production have fallen dramatically as we have increased the length of the production runs." 
D) "Despite the higher costs of negotiating the contracts, hiring the cleaning firm is much cheaper than using our own staff." 
E) "The computer servicing people we have hired work very well as an integrated problem-solving group."

Question 8

Which of the following is part of a firm's opportunity cost of production?
I. wages
II. utility costs
III. interest on a bank loan
IV. interest forgone on funds used to buy capital equipment

Accepted Answer

A) I only 
B) II only 
C) III only 
D) IV only 
E) I, II, III, and IV 
A) I only 
B) II only 
C) III only 
D) IV only 
E) I, II, III, and IV

Question 9

A firm with two or more owners who have unlimited liability is

Accepted Answer

A) a sole proprietorship. 
B) a partnership. 
C) a conglomerate. 
D) a corporation. 
E) a public company. 
A) a sole proprietorship. 
B) a partnership. 
C) a conglomerate. 
D) a corporation. 
E) a public company.

Question 10

Use the information below to answer the following questions.
Fact 10.3.1 Executive Pay
Executive compensation, based on performance, can theoretically constrain pay, but companies are paying their top executives more and more. The median compensation of a CEO in 2013 was $13.9 million, up 9 percent from 2012
Source: CNBC, April 28, 2014
-Refer to Fact 10.3.1. CEO compensation schemes are designed to solve

Accepted Answer

A) the principal-agent problem. 
B) the problem of CEOs without long-term labour contracts. 
C) the problem of slow and expansive decision-making in a complex management structure. 
D) the problem that many CEOs lose all of their wealth if the corporation goes bankrupt. 
E) the problem of the CEO being taxed twice-once on salary income and once on dividend income. 
A) the principal-agent problem. 
B) the problem of CEOs without long-term labour contracts. 
C) the problem of slow and expansive decision-making in a complex management structure. 
D) the problem that many CEOs lose all of their wealth if the corporation goes bankrupt. 
E) the problem of the CEO being taxed twice-once on salary income and once on dividend income.

Question 11

Emma owns a firm that produces umbrellas. Currently, Emma produces 2,500 umbrellas a day. Emma cannot produce more umbrellas in a day unless she purchases another machine or else hires more workers. Emma is ________ efficient.

Accepted Answer

A) economically 
B) economically and technologically 
C) technologically 
D) not 
E) capital and labour 
A) economically 
B) economically and technologically 
C) technologically 
D) not 
E) capital and labour

Team production is a production process in which

Where the Herfindahl-Hirschman Index is less than 1,000, the market is regarded as

Use the table below to answer the following questions. Table 10.2.2 Three methods of making one medical hologram -Refer to Table 10.2.2. If the price of labour is $20 per unit and the price of capital is $10 per unit, which method is economically efficient?

The Herfindahl-Hirschman Index (HHI)for a local water supplier is

Use the table below to answer the following questions. Table 10.4.1 -Refer to Table 10.4.1. The four-firm concentration ratio for the pizza sellers is

A group of business people are having coffee. Which of the following quotations describes transactions costs?

Which of the following is part of a firm's opportunity cost of production? I. wages II. utility costs III. interest on a bank loan IV. interest forgone on funds used to buy capital equipment

A firm with two or more owners who have unlimited liability is

Emma owns a firm that produces umbrellas. Currently, Emma produces 2,500 umbrellas a day. Emma cannot produce more umbrellas in a day unless she purchases another machine or else hires more workers. Emma is ________ efficient.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Governments Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Macro Only: International Trade Policy

Filters

Exam 10: Organizing Production

Team production is a production process in which

Where the Herfindahl-Hirschman Index is less than 1,000, the market is regarded as

Use the table below to answer the following questions. Table 10.2.2 Three methods of making one medical hologram -Refer to Table 10.2.2. If the price of labour is $20 per unit and the price of capital is $10 per unit, which method is economically efficient?

The Herfindahl-Hirschman Index (HHI)for a local water supplier is

Use the table below to answer the following questions. Table 10.4.1 -Refer to Table 10.4.1. The four-firm concentration ratio for the pizza sellers is

A group of business people are having coffee. Which of the following quotations describes transactions costs?

Which of the following is part of a firm's opportunity cost of production? I. wages II. utility costs III. interest on a bank loan IV. interest forgone on funds used to buy capital equipment

A firm with two or more owners who have unlimited liability is

Emma owns a firm that produces umbrellas. Currently, Emma produces 2,500 umbrellas a day. Emma cannot produce more umbrellas in a day unless she purchases another machine or else hires more workers. Emma is ________ efficient.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Governments Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Macro Only: International Trade Policy

Filters