Question 1

Improvements in technology shift the:

Accepted Answer

A)  Production function downward. 
B)  Marginal cost curve downward. 
C)  Average total cost curve upward. 
D)  Fixed cost curve upward. 
A)  Production function downward. 
B)  Marginal cost curve downward. 
C)  Average total cost curve upward. 
D)  Fixed cost curve upward.

Question 2

Table 5.2-Jeans Production  
-If the firm in Table 5.2 can sell jeans for $7.00 per pair,the total profit from producing 30 pair is:

Accepted Answer

A)  $13. 
B)  $3. 
C)  $30. 
D)  $210. 
A)  $13. 
B)  $3. 
C)  $30. 
D)  $210.

Question 3

Why in the short-run does marginal physical product increase but beyond some point start to decrease and eventually become negative?

Accepted Answer

At first when the fixed inputs are relat

Question 4

How intensively to use existing plant and equipment is a long-run investment decision.

Accepted Answer

A) True 
 B)False

Question 5

If price is greater than marginal cost for the last unit produced:

Accepted Answer

A)  Profit is increasing. 
B)  Profit is decreasing. 
C)  Only economic costs are being covered. 
D)  Average total cost is covereD. 
A)  Profit is increasing. 
B)  Profit is decreasing. 
C)  Only economic costs are being covered. 
D)  Average total cost is covereD.

Question 6

Table 5.3-Yearbook costs
(This table shows the total cost of producing yearbooks using a school's print shop. )  
-In Table 5.3,marginal cost per yearbook,between 100 and 200 yearbooks is equal to:

Accepted Answer

A)  $400. 
B)  $4. 
C)  $16. 
D)  $12. 
A)  $400. 
B)  $4. 
C)  $16. 
D)  $12.

Question 7

Economic costs include only the explicit payments made for a factor of production.

Accepted Answer

A) True 
 B)False

Question 8

In the long run,all costs are variable.

Accepted Answer

A) True 
 B)False

Question 9

Profit is equal to total revenue minus total cost.

Accepted Answer

A) True 
 B)False

Question 10

Economic costs are the value of all resources used to produce a good or service.

Accepted Answer

A) True 
 B)False

Question 11

Economic and accounting costs differ by the amount of explicit costs.

Accepted Answer

A) True 
 B)False

Question 12

The law of diminishing returns can explain why:

Accepted Answer

A)  Marginal cost eventually increases in the short run as more output is produced. 
B)  The demand curve is typically downward sloping. 
C)  The average fixed-cost curve declines as long as output increases. 
D)  Marginal cost decreases as more output is produced. 
A)  Marginal cost eventually increases in the short run as more output is produced. 
B)  The demand curve is typically downward sloping. 
C)  The average fixed-cost curve declines as long as output increases. 
D)  Marginal cost decreases as more output is produced.

Question 13

In defining costs,economists recognize:

Accepted Answer

A)  Explicit and implicit costs while accountants recognize only implicit costs. 
B)  Explicit and implicit costs while accountants recognize only explicit costs. 
C)  Only explicit costs while accountants recognize only implicit costs. 
D)  Only explicit costs while accountants recognize explicit and implicit costs. 
A)  Explicit and implicit costs while accountants recognize only implicit costs. 
B)  Explicit and implicit costs while accountants recognize only explicit costs. 
C)  Only explicit costs while accountants recognize only implicit costs. 
D)  Only explicit costs while accountants recognize explicit and implicit costs.

Question 14

Explicit costs:

Accepted Answer

A)  Include only payments to labor. 
B)  Are the sum of actual monetary payments made for resources used to produce a good. 
C)  Include the market value of all resources used to produce a good. 
D)  Are the total value of resources used to produce a good but for which no monetary payment is actually made. 
A)  Include only payments to labor. 
B)  Are the sum of actual monetary payments made for resources used to produce a good. 
C)  Include the market value of all resources used to produce a good. 
D)  Are the total value of resources used to produce a good but for which no monetary payment is actually made.

Question 15

Total cost is equal to _____ costs at an output level of zero.

Accepted Answer

A)  Variable 
B)  Fixed 
C)  Economic 
D)  Marginal 
A)  Variable 
B)  Fixed 
C)  Economic 
D)  Marginal

Question 16

Table 5.6
Complete the following table,and use the information in the table to answer the question(s)below.  
-In Table 5.6,the total cost of 2 units of output is:

Accepted Answer

A)  $4. 
B)  $6. 
C)  $12. 
D)  $27. 
A)  $4. 
B)  $6. 
C)  $12. 
D)  $27.

Question 17

Advances in managerial knowledge shift the production function:

Accepted Answer

A)  And the marginal cost curve upward. 
B)  And the average total cost curve downward. 
C)  Upward and the average total cost curve downward. 
D)  Downward and the marginal cost curve upward. 
A)  And the marginal cost curve upward. 
B)  And the average total cost curve downward. 
C)  Upward and the average total cost curve downward. 
D)  Downward and the marginal cost curve upward.

Question 18

The factors of production include:

Accepted Answer

A)  Money. 
B)  Profit. 
C)  Land,labor,capital,and entrepreneurship. 
D)  Output in a production function. 
A)  Money. 
B)  Profit. 
C)  Land,labor,capital,and entrepreneurship. 
D)  Output in a production function.

Question 19

Total revenue minus total cost equals:

Accepted Answer

A)  Profit. 
B)  Variable costs. 
C)  Economic costs. 
D)  Marginal revenue. 
A)  Profit. 
B)  Variable costs. 
C)  Economic costs. 
D)  Marginal revenue.

Question 20

Table 5.6
Complete the following table,and use the information in the table to answer the question(s)below.  
-In Table 5.6,total fixed costs are equal to:

Accepted Answer

A)  $0 because the problem involves the long run. 
B)  $4. 
C)  $15. 
D)  $23. 
A)  $0 because the problem involves the long run. 
B)  $4. 
C)  $15. 
D)  $23.

Improvements in technology shift the:

Table 5.2-Jeans Production -If the firm in Table 5.2 can sell jeans for $7.00 per pair,the total profit from producing 30 pair is:

Why in the short-run does marginal physical product increase but beyond some point start to decrease and eventually become negative?

How intensively to use existing plant and equipment is a long-run investment decision.

If price is greater than marginal cost for the last unit produced:

Table 5.3-Yearbook costs (This table shows the total cost of producing yearbooks using a school's print shop. ) -In Table 5.3,marginal cost per yearbook,between 100 and 200 yearbooks is equal to:

Economic costs include only the explicit payments made for a factor of production.

In the long run,all costs are variable.

Profit is equal to total revenue minus total cost.

Economic costs are the value of all resources used to produce a good or service.

Economic and accounting costs differ by the amount of explicit costs.

The law of diminishing returns can explain why:

In defining costs,economists recognize:

Explicit costs:

Total cost is equal to _____ costs at an output level of zero.

Table 5.6 Complete the following table,and use the information in the table to answer the question(s)below. -In Table 5.6,the total cost of 2 units of output is:

Advances in managerial knowledge shift the production function:

The factors of production include:

Total revenue minus total cost equals:

Table 5.6 Complete the following table,and use the information in the table to answer the question(s)below. -In Table 5.6,total fixed costs are equal to:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

Exam 5: Supply Decisions

Improvements in technology shift the:

Table 5.2-Jeans Production -If the firm in Table 5.2 can sell jeans for $7.00 per pair,the total profit from producing 30 pair is:

Why in the short-run does marginal physical product increase but beyond some point start to decrease and eventually become negative?

How intensively to use existing plant and equipment is a long-run investment decision.

If price is greater than marginal cost for the last unit produced:

Table 5.3-Yearbook costs (This table shows the total cost of producing yearbooks using a school's print shop. ) -In Table 5.3,marginal cost per yearbook,between 100 and 200 yearbooks is equal to:

Economic costs include only the explicit payments made for a factor of production.

In the long run,all costs are variable.

Profit is equal to total revenue minus total cost.

Economic costs are the value of all resources used to produce a good or service.

Economic and accounting costs differ by the amount of explicit costs.

The law of diminishing returns can explain why:

In defining costs,economists recognize:

Explicit costs:

Total cost is equal to _____ costs at an output level of zero.

Table 5.6 Complete the following table,and use the information in the table to answer the question(s)below. -In Table 5.6,the total cost of 2 units of output is:

Advances in managerial knowledge shift the production function:

The factors of production include:

Total revenue minus total cost equals:

Table 5.6 Complete the following table,and use the information in the table to answer the question(s)below. -In Table 5.6,total fixed costs are equal to:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters