ECONOMICS TEST 3 MCQS WITH DETAILED ANSWERS | UPDATED EXAM BANK | PASS WITH CONFIDENCE

ECONOMICS TEST 3 MCQS WITH DETAILED ANSWERS |
UPDATED EXAM BANK | PASS WITH CONFIDENCE
ECONOMISTS ASSUME THAT THE TYPICAL PERSON WHO STARTS HER OWN BUSINESS DOES SO
WITH THE INTENTION OF

A. DONATING THE PROFITS FROM HER BUSINESS TO CHARITY.

B. CAPTURING THE HIGHEST NUMBER OF SALES IN HER INDUSTRY.

C. MAXIMIZING PROFITS.

D. MINIMIZING COSTS.

CORRECT ANS>> C




TOTAL COST IS THE

A. AMOUNT A FIRM RECEIVES FOR THE SALE OF ITS OUTPUT.

B. FIXED COST LESS VARIABLE COST.

C. MARKET VALUE OF THE INPUTS A FIRM USES IN PRODUCTION.

D. QUANTITY OF OUTPUT MINUS THE QUANTITY OF INPUTS USED TO MAKE A GOOD.

CORRECT ANS>> C




THOSE THINGS THAT MUST BE FORGONE TO ACQUIRE A GOOD ARE CALLED

A. IMPLICIT COSTS.

B. OPPORTUNITY COSTS.

C. EXPLICIT COSTS.

D. ACCOUNTING COSTS.

CORRECT ANS>> B

, EXPLICIT COSTS

A. REQUIRE AN OUTLAY OF MONEY BY THE FIRM.

B. INCLUDE ALL OF THE FIRM'S OPPORTUNITY COSTS.

C. INCLUDE INCOME THAT IS FORGONE BY THE FIRM'S OWNERS.

D. BOTH B AND C ARE CORRECT.

CORRECT ANS>> A




IMPLICIT COSTS

A. DO NOT REQUIRE AN OUTLAY OF MONEY BY THE FIRM.

B. DO NOT ENTER INTO THE ECONOMIST'S MEASUREMENT OF A FIRM'S PROFIT.

C. ARE ALSO KNOWN AS VARIABLE COSTS.

D. ARE NOT PART OF AN ECONOMIST'S MEASUREMENT OF OPPORTUNITY COST.

CORRECT ANS>> A




ACCOUNTING PROFIT IS EQUAL TO

A. MARGINAL REVENUE MINUS MARGINAL COST.

B. TOTAL REVENUE MINUS THE EXPLICIT COST OF PRODUCING GOODS AND SERVICES.

C. TOTAL REVENUE MINUS THE OPPORTUNITY COST OF PRODUCING GOODS AND SERVICES.

D. AVERAGE REVENUE MINUS THE AVERAGE COST OF PRODUCING THE LAST UNIT OF A GOOD
OR SERVICE.

CORRECT ANS>> B