Econ 1 Module 8 Quiz - Assignment Essays

question

Natural resources and labor are two factors of what?

answer

production

question

Which of the following are true statements about natural resources?

answer

natural resources can be used by people to produce goods and services

question

Which of the following are forms of labor?

answer

the natural ability of a worker
the skills a worker has acquired

question

When an owner uses resources they own in a business, that usage should be considered

answer

an implicit cost

question

A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. What was the firm's accounting profit?

answer

$50,000

question

The term ________ describes a situation where the quantity of output rises, but the average cost of production falls.

answer

economies of scale

question

Economies to scale refers to the ________ where all inputs are being allowed to increase together.

answer

long-run average cost curve

question

Diseconomies of scale arise ________.

answer

in the long run

question

Which of the following is most likely to be a fixed cost?

answer

mortgage payments

question

________ include all of the costs of production that increase with the quantity produced.

answer

variable costs

question

Except for one point, the short run average cost must always be ________ the long run average cost.

answer

greater than

question

A firm's ________ consist of expenditures that must be made before production starts that typically, over the short run, ________ regardless of the level of production.

answer

fixed costs; do not change

question

________ include all spending on labor, machinery, tools, and supplies purchased from other firms.

answer

total costs

question

The marginal cost curve is generally ________, because diminishing marginal returns implies that additional units are ________.

answer

upward-sloping; more costly to produce

question

________ occur when the marginal gain in output diminishes as each additional unit of input is added.

answer

diminishing marginal returns

question

2 The marginal product of labor is known to be greater than the average product of labor at a given level of employment. The Average Product at this point would be ________.

answer

increasing

question

2 The marginal product of labor is known to be greater than the average product of labor at a given level of employment. The Average Product at this point would be ________.

answer

upward sloping and then downward sloping

question

The upward sloping portion of a long-run cost curve illustrates:

answer

diseconomies to scale

question

sunk costs have

answer

should have no effect on output decisions

question

Economists distinguish between the short run and the long run as follows:

answer

In the long run, all resources are variable; in the short run, at least one resource is fixed

1 of 20

question

Natural resources and labor are two factors of what?

answer

production

question

Which of the following are true statements about natural resources?

answer

natural resources can be used by people to produce goods and services

question

Which of the following are forms of labor?

answer

the natural ability of a worker
the skills a worker has acquired

question

When an owner uses resources they own in a business, that usage should be considered

answer

an implicit cost

question

A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. What was the firm's accounting profit?

answer

$50,000

question

The term ________ describes a situation where the quantity of output rises, but the average cost of production falls.

answer

economies of scale

question

Economies to scale refers to the ________ where all inputs are being allowed to increase together.

answer

long-run average cost curve

question

Diseconomies of scale arise ________.

answer

in the long run

question

Which of the following is most likely to be a fixed cost?

answer

mortgage payments

question

________ include all of the costs of production that increase with the quantity produced.

answer

variable costs

question

Except for one point, the short run average cost must always be ________ the long run average cost.

answer

greater than

question

A firm's ________ consist of expenditures that must be made before production starts that typically, over the short run, ________ regardless of the level of production.

answer

fixed costs; do not change

question

________ include all spending on labor, machinery, tools, and supplies purchased from other firms.

answer

total costs

question

The marginal cost curve is generally ________, because diminishing marginal returns implies that additional units are ________.

answer

upward-sloping; more costly to produce

question

________ occur when the marginal gain in output diminishes as each additional unit of input is added.

answer

diminishing marginal returns

question

2 The marginal product of labor is known to be greater than the average product of labor at a given level of employment. The Average Product at this point would be ________.

answer

increasing

question

2 The marginal product of labor is known to be greater than the average product of labor at a given level of employment. The Average Product at this point would be ________.

answer

upward sloping and then downward sloping

question

The upward sloping portion of a long-run cost curve illustrates:

answer

diseconomies to scale

question

sunk costs have

answer

should have no effect on output decisions

question

Economists distinguish between the short run and the long run as follows:

answer

In the long run, all resources are variable; in the short run, at least one resource is fixed

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