econ chapter 7 practice - Assignment Essays

question

most American businesses are this form of business

answer

sole proprietorship

question

Limited liability encourages investors to invest large amounts of money in this form of business.

answer

corporation

question

It is argued that this form of business contributes the most to increases in the nation's output (GDP).

answer

corporation

question

Ownership is distributed among a small number of people. This type of business is subject to unlimited liability.

answer

partnership

question

Shareholders are the owners of this form of business.

answer

corporation

question

Which business organization can raise capital by issuing stock?

answer

corporation

question

Which business organization typically has a single owner that has unlimited liability?

answer

sole proprietorship

question

Total revenue is best described as

answer

price per unit times the number of units sold.

question

economic profit is

answer

typically lower than accounting profit

question

Economic costs and accounting costs differ because accountants include

answer

only explicit costs

question

Economic costs and accounting costs differ because economists include

answer

both explicit and implicit costs

question

What is the primary difference between accounting profits and economic profits?

answer

accounting profits ignore implicit costs; economic profits consider them.

question

In order to produce more cookies, Mrs. Meadows asks her third shift to work overtime.

answer

short run

question

Newton Bros. Bagels opens a new store on the other side of town.

answer

long run

question

Purpleberry Frozen Custard has $11,000 of fixed costs and $45,000 of variable costs.

answer

short run

question

This is a period of time during which a firm is unable to increase or decrease its amount of capital.

answer

short run

question

This lasts at least six months but no longer than one year.

answer

neither short or long

question

Because of dismal sales last year, half of the city's donut shops exit the industry.

answer

long run

question

When eight weavers are employed, and output is 80 baskets, ___________ is equal to 10 baskets.

answer

average product

question

An additional worker adds less to total output than the previous worker hired.

answer

diminishing returns

question

This is the change in total output divided by the change in the number of workers.

answer

marginal product

question

If hiring Kristen causes average product to increase, Kristen's ___________ must be above current average product.

answer

marginal product

question

This is total output divided by the number of workers.

answer

average product

question

Joe notices that when he hires another worker, the number of cars his company can wash increases.

answer

marginal product

question

Marginal cost is defined as

answer

the change in total costs from producing one more unit of output.

question

The marginal cost curve often decreases at first and then starts to increase. This is explained by

answer

the law of diminishing returns.

question

what is the equation for marginal cost

answer

change in total cost / change in quantity

question

what is the equation for average total cost

answer

total cost/quantity

question

The change in total cost divided by the change in output:

answer

marginal cost

question

The sum of all costs that change as output changes divided by the number of units produced:

answer

average variable cost

question

Suppose that a car manufacturer discovers that it can lower its average costs if it diversifies its operation by also producing pickup trucks and SUVs.
What concept does this illustrate?

answer

economies of scope

1 of 31

question

most American businesses are this form of business

answer

sole proprietorship

question

Limited liability encourages investors to invest large amounts of money in this form of business.

answer

corporation

question

It is argued that this form of business contributes the most to increases in the nation's output (GDP).

answer

corporation

question

Ownership is distributed among a small number of people. This type of business is subject to unlimited liability.

answer

partnership

question

Shareholders are the owners of this form of business.

answer

corporation

question

Which business organization can raise capital by issuing stock?

answer

corporation

question

Which business organization typically has a single owner that has unlimited liability?

answer

sole proprietorship

question

Total revenue is best described as

answer

price per unit times the number of units sold.

question

economic profit is

answer

typically lower than accounting profit

question

Economic costs and accounting costs differ because accountants include

answer

only explicit costs

question

Economic costs and accounting costs differ because economists include

answer

both explicit and implicit costs

question

What is the primary difference between accounting profits and economic profits?

answer

accounting profits ignore implicit costs; economic profits consider them.

question

In order to produce more cookies, Mrs. Meadows asks her third shift to work overtime.

answer

short run

question

Newton Bros. Bagels opens a new store on the other side of town.

answer

long run

question

Purpleberry Frozen Custard has $11,000 of fixed costs and $45,000 of variable costs.

answer

short run

question

This is a period of time during which a firm is unable to increase or decrease its amount of capital.

answer

short run

question

This lasts at least six months but no longer than one year.

answer

neither short or long

question

Because of dismal sales last year, half of the city's donut shops exit the industry.

answer

long run

question

When eight weavers are employed, and output is 80 baskets, ___________ is equal to 10 baskets.

answer

average product

question

An additional worker adds less to total output than the previous worker hired.

answer

diminishing returns

question

This is the change in total output divided by the change in the number of workers.

answer

marginal product

question

If hiring Kristen causes average product to increase, Kristen's ___________ must be above current average product.

answer

marginal product

question

This is total output divided by the number of workers.

answer

average product

question

Joe notices that when he hires another worker, the number of cars his company can wash increases.

answer

marginal product

question

Marginal cost is defined as

answer

the change in total costs from producing one more unit of output.

question

The marginal cost curve often decreases at first and then starts to increase. This is explained by

answer

the law of diminishing returns.

question

what is the equation for marginal cost

answer

change in total cost / change in quantity

question

what is the equation for average total cost

answer

total cost/quantity

question

The change in total cost divided by the change in output:

answer

marginal cost

question

The sum of all costs that change as output changes divided by the number of units produced:

answer

average variable cost

question

Suppose that a car manufacturer discovers that it can lower its average costs if it diversifies its operation by also producing pickup trucks and SUVs.
What concept does this illustrate?

answer

economies of scope

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order