Rio ECN212 Lesson4 quiz

7/23/2019 Rio ECN212 Lesson4 quiz

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hank you for your participation in this assignment. Your work hasbeen submitted to your instructor.Total score: 26 out of 30, 87%

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Question

1 of 30A payment for the use of any resource over and above its opportunity cost is called

accounting profit.

economic profit.

normal cost.

economic rent.

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Question

of 30An individual would willingly give a concert for "000. #f she is paid $"000 for theconcert" she is

receiving 3"000 to cover her opportunity cost.

not being paid her full opportunity cost.

receiving 3"000 of economic rent.

certainly being paid more than warranted by the level of demand.

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Question

3 of 30%conomic profit can be calculated as

total revenue & e'plicit costs.

total revenue & implicit costs.

total revenue & e'plicit costs & implicit costs.


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total revenue & fi'ed costs.

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Question

( of 30#n a partnership" legal responsibility for all debts is

shared by the partners.

passed to the shareholders.

paid by the principle owner.

handled by the bondholders.

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Question

$ of 30#mplicit costs are measured by

the value of the ne't&best alternative uses of inputs.

actual e'penses paid by a firm.

total revenues minus total costs.

the lowest value of all alternative uses of inputs.

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Question

) of 30#nterest is paid to

all holders of stock.

individuals who own gold.

owners of capital.

borrowers of funds.

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*he correct answer is+owners of capital.

Question

, of 30*he greater is the risk of non&repayment of a loan" the

higher is the e'pected rate of interest.

longer is the e'pected time to repay the loan.

lower is the handling charges for the loan.

lower is the e'pected rate of interest.

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Question

- of 30usinesses demand funds because

they prefer earlier consumption to later consumption.

they have deficits to cover.

they prefer to purchase capital goods in the current year.

they make investments that they believe will increase productivity and profitability.

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Question

/ of 30A share of stock in a corporation is

a guarantee to a fi'ed amount of income from the corporation.

a legal claim to a lump&sum payment at a specified point of time in the future.a legal claim to a dividend" regardless of the corporations ability to pay its interestpayments.

a legal claim to a share of the companys future profits.

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Question

10 of 30A legal claim against a firm that usually entitles the owner of the claim to receive a fi'edannual coupon payment" plus a lump&sum payment at some future date" is known as

a bond.

a share of common stock.

a share of preferred stock.

a reinvestment coupon.

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Question

11 of 30*he three primary sources of corporate funds are

banks" friends" and family.

government" other corporations" and the central bank.

investment banks" brokerages" and insurance companies.

stocks" bonds" and reinvestment of profits.

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Question

1 of 30*he theory that there is no predictable trends in securities prices is the

opportunity cost of capital.

random walk theory.

capital reinvestment.

present value.

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Question


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13 of 30hich of the following is a *2% statement about stock markets4

%conomists can make above&average profits in the stock market because of theirspeciali5ed knowledge of economics.

#t is always better to buy growth stocks than the older and more stable blue&chip

stocks.*he stock market on average over time is random and totally unrelated to theperformance of the economy.

#t is illegal for a friend of a corporate e'ecutive to make large profits in the stockmarket by using his inside information.

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Question

1( of 30%conomists generally define the short run as being

that period of time in which at least one of the firms inputs" usually plant si5e" isfi'ed.

that period of time in which all inputs are variable.

any period of time less than one year.

any period of time less than si' months.

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Question

1$ of 30hich of the following is *2% about the long run4

All resources are variable.

All resources are fi'ed.

At least one resource is fi'ed.

6one of the above.

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Question


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1) of 307r. 8ames company produces candy bars. hich is 69* a variable input for this firm4

:ugar

Assembly line workers

*he big chocolate&stirring machines

;ackaging materials

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Question

1, of 30:uppose that one worker can produce 1$ cookies" two workers can produce 3$ cookies

together" and three workers can produce )$ cookies together. hat is the marginalproduct of the nd worker4

1$ cookies

0 cookies

30 cookies

3$ cookies

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Question

1- of 30*he concept of the production function implies that a firm using resources inefficientlywill

obtain more output than the theoretical production function shows.

obtain e'actly the amount that the theoretical production function shows.

not be sub


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1/ of 30Average physical product is calculated by dividing total product by the

amount of variable and fi'ed inputs employed.

=uantity of the variable input.

=uantity of the fi'ed input.

production function.

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Question

0 of 30*he marginal productivity of labor will eventually decrease as more workers are

employed because

average product is increasing.

total product is decreasing.

the amount of capital will also be increasing.

on the average each worker will have fewer inputs to work with.

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Question

1 of 30:uppose that a firm is currently producing 1"000 units of output. At this level of output"

A>C is 1 per unit" and *?C is $00. hat is the firms *C4

1"$00

1"000

$01

(//

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Question

of 30


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#n economics" a fi'ed cost is a cost that

is present only in the short run.

goes up as the level of output goes up.

goes down as the level of output goes up.

does not vary with the level of output.

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*he correct answer is+does not ar! with the leel of output.

Question

3 of 30At the output rate at which diminishing marginal product begins" a firm will e'perience

constant average total costs.

increasing average fi'ed costs.

increasing marginal costs.

decreasing average variable costs.

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Question

( of 30#f the price of labor is constant and a firm e'periences diminishing marginal product" thenits

marginal costs increase.

marginal costs decrease.

fi'ed costs increase.

total costs decrease.

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Question

$ of 30#n economics" the planning hori5on is defined as


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10 years for every firm.

the longest time period over which the firm can make decisions.

the period of time for which technology is fi'ed.

the long run" during which all inputs are variable.

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Question

) of 30hich of the following is 69* one of the reasons a firm might be e'pected to e'perienceeconomies of scale4

speciali5ation

the dimensional factor

improved productive e=uipment

depreciation

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Question

, of 30@ue to e'tremely large fi'ed costs" an electricity generating plant probably e'perienceswhich of the following returns to si5e4

diseconomies of scale

diminishing marginal product

constant returns to scale

economies of scale

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*he correct answer is+

econo"ies of scale

Question

- of 30#f a firm gets so large that management of employees and other resources becomes acostly problem" it will be e'periencing


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diseconomies of scale.

diminishing marginal product.

constant returns to scale.

economies of scale.

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Question

/ of 307inimum efficient scale is defined as

the lowest output level at which long&run average costs are at their minimum.

the amount of labor that ma'imi5es the marginal product of labor.

the point at which marginal cost" average variable cost" and average fi'ed cost areall e=ual.

the point at which economies of scale are at their ma'imum.

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Question

30 of 30


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2efer to the above figure. *he curve reflects

the law of diminishing marginal product in labor.

the law of increasing marginal product in labor.

the law of diminishing marginal product in capital.

the law of increasing marginal product in capital.

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Rio ECN212 Lesson4 quiz