ECON 2003 -PRODUCTION QUESTINS AND ANSWERS

ECON 2003 -PRODUCTION


Terms in this set (122)


Economic costs can be defined B: implicit; explicit
as the sum of _____ and
__________costs.


A: explicit;
average B:
implicit;
explicit C:
total;
marginal D:
implicit;
average
Monetary payments made by Blank 1: explicit or accounting
individuals, firms ,and
governments for the use of
others' land, labor, capital,
and entrepreneurial ability are
__________________ costs.
The________costs of using owned Blank 1: opportunity
resources are implicit costs.
_______costs are also known as Blank 1: explicit
accounting costs whereas_costs Blank 2: implicit
are the opportunity costs of
using owned resources.
An opportunity cost is Blank 1: implicit
associated with any cost Blank 2: explicit
whether it is an_____cost or
an
_______cost.

,Which of the following is true A: Economic costs are defined as the sum of explicit and implicit costs.
of economic costs?


A: Economic costs are defined
as the sum of explicit and
implicit costs.
B: Economic costs are
defined as the sum of all
implicit costs.
C: Economic costs are defined
as the sum of all explicit
costs.
D: Economic costs are
defined as the difference
between explicit costs and
implicit costs.
Explicit costs are also known as Blank 1: direct
______________
(direct/opportunity) costs.
____is an important factor in A: Implicit cost
determining
the true cost of an economic
activity such as the
production of goods and
services.

A: Implicit
cost B:
Total
revenue C:
Supply
cost D:
Demand
cost



The opportunity costs of Blank 1: implicit
using owned resources
are____________costs.
Total revenue minus the D: economic
explicit and implicit costs of
production is_____profit.


A:
accountin

, g B:
normal
C: interior
D: economic
A person who has been Blank 1: 30000 or 30,000
managing a dry cleaning
store for $30,000 per year
decides to open his own dry
cleaning store. The expenses
are $35,000 for salaries
(excluding the owner's),
$10,000 for supplies, $8,000
for rent, $2,000 for utilities,
and $5,000 for interest on a
bank loan. The implicit costs
are $_______________.
_________(Opportunity/Marginal) Blank 1: Opportunity
cost is
the cost of the next best
alternative that is foregone.
The costs associated with the A: economic costs.
use of resources are called:


A: economic
costs. B:
accounting
costs. C:
implicit costs.
D: explicit costs.