Eco 204 Week 3 Quiz

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ECO 204 Week 3 Quiz

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ECO 204 Week 3 Quiz

An example of a horizontally integrated firm is one that (Points : 1)

owns several plants, each handling a different stage of production.
produces a variety of goods and sells them in widely disparate markets.
owns several plants, each manufacturing the same product.
owns several plants in the same state.
uses highly automated assembly line techniques.

2. Ralph's Travel Agency had accounting profits of $50,000 and implicit costs of $30,000. What were economic profits? (Points : 1)

$50,000
$30,000
$20,000
The amount cannot be determined from the information given.

3. Technical efficiency is (Points : 1)

using the least-cost method of production.
the method of production that minimizes physical usage of inputs according to some specific rule.
the process of turning inputs into outputs.
the process of minimizing output with a given level of inputs.
the method of production that uses the least labor per unit of capital.

4. Accounting profit is defined as (Points : 1)

total simplicit costs.
total monetary costs.
total opportunity costs.
total sales(implicit costs + explicit costs).
total sales(explicit costs – implicit costs).

5. Last spring, Coil Spring Co. reported that average fixed costs had increased, but average variable costs were unchanged. This indicates that (Points : 1)

marginal costs are less than average variable cost but greater than average cost.
fixed costs have increased.
output is declining.
marginal costs have increased.

6. A vertically integrated firm might own (Points : 1)

a ski factory, an Alpine resort hotel, and an emergency medical center.
several plants that manufacture different qualities of skis.
a ski factory, a cigar manufacturer, and a carpet factory.
several plants in different countries that manufacture skis.

7. The short run is (Points : 1)

less than six months.
more than six months, but less than a year.
in the short run, some productive resources may be fixed although some other resources may be varied.
the period of time in which all the productive resources can be varied.
the period of time in which all the inputs are fixed.

8. Which of the following is most likely to be an implicit cost of production? (Points : 1)

Wages paid to skilled workers
Payments for inputs purchased from other companies
Interest paid on a loan
Rental income from real property
Rental income not received from use of a self-owned piece of land

9. The technical relationship between inputs and outputs, which is needed to understand the difference between the short run and the long run, is called (Points : 1)

technical efficiency.
economic efficiency.
a production function.
a time and motion study.
supply and demand.

10. What is one thing that entrepreneurs do NOT do? (Points : 1)

They identify consumer demands.
They establish supply and demand.
They organize production.
They allocate resources.
They acquire assets.

Front 2

ECO 204 Week 3 Quiz

http://www.fres-courses.com/product/eco-204-week-3-quiz

Back 2

ECO 204 Week 3 Quiz

An example of a horizontally integrated firm is one that (Points : 1)

owns several plants, each handling a different stage of production.
produces a variety of goods and sells them in widely disparate markets.
owns several plants, each manufacturing the same product.
owns several plants in the same state.
uses highly automated assembly line techniques.

2. Ralph's Travel Agency had accounting profits of $50,000 and implicit costs of $30,000. What were economic profits? (Points : 1)

$50,000
$30,000
$20,000
The amount cannot be determined from the information given.

3. Technical efficiency is (Points : 1)

using the least-cost method of production.
the method of production that minimizes physical usage of inputs according to some specific rule.
the process of turning inputs into outputs.
the process of minimizing output with a given level of inputs.
the method of production that uses the least labor per unit of capital.

4. Accounting profit is defined as (Points : 1)

total simplicit costs.
total monetary costs.
total opportunity costs.
total sales(implicit costs + explicit costs).
total sales(explicit costs – implicit costs).

5. Last spring, Coil Spring Co. reported that average fixed costs had increased, but average variable costs were unchanged. This indicates that (Points : 1)

marginal costs are less than average variable cost but greater than average cost.
fixed costs have increased.
output is declining.
marginal costs have increased.

6. A vertically integrated firm might own (Points : 1)

a ski factory, an Alpine resort hotel, and an emergency medical center.
several plants that manufacture different qualities of skis.
a ski factory, a cigar manufacturer, and a carpet factory.
several plants in different countries that manufacture skis.

7. The short run is (Points : 1)

less than six months.
more than six months, but less than a year.
in the short run, some productive resources may be fixed although some other resources may be varied.
the period of time in which all the productive resources can be varied.
the period of time in which all the inputs are fixed.

8. Which of the following is most likely to be an implicit cost of production? (Points : 1)

Wages paid to skilled workers
Payments for inputs purchased from other companies
Interest paid on a loan
Rental income from real property
Rental income not received from use of a self-owned piece of land

9. The technical relationship between inputs and outputs, which is needed to understand the difference between the short run and the long run, is called (Points : 1)

technical efficiency.
economic efficiency.
a production function.
a time and motion study.
supply and demand.

10. What is one thing that entrepreneurs do NOT do? (Points : 1)

They identify consumer demands.
They establish supply and demand.
They organize production.
They allocate resources.
They acquire assets.

Front 3

ECO 204 Week 3 Quiz

http://www.fres-courses.com/product/eco-204-week-3-quiz

Back 3

ECO 204 Week 3 Quiz

An example of a horizontally integrated firm is one that (Points : 1)

owns several plants, each handling a different stage of production.
produces a variety of goods and sells them in widely disparate markets.
owns several plants, each manufacturing the same product.
owns several plants in the same state.
uses highly automated assembly line techniques.

2. Ralph's Travel Agency had accounting profits of $50,000 and implicit costs of $30,000. What were economic profits? (Points : 1)

$50,000
$30,000
$20,000
The amount cannot be determined from the information given.

3. Technical efficiency is (Points : 1)

using the least-cost method of production.
the method of production that minimizes physical usage of inputs according to some specific rule.
the process of turning inputs into outputs.
the process of minimizing output with a given level of inputs.
the method of production that uses the least labor per unit of capital.

4. Accounting profit is defined as (Points : 1)

total simplicit costs.
total monetary costs.
total opportunity costs.
total sales(implicit costs + explicit costs).
total sales(explicit costs – implicit costs).

5. Last spring, Coil Spring Co. reported that average fixed costs had increased, but average variable costs were unchanged. This indicates that (Points : 1)

marginal costs are less than average variable cost but greater than average cost.
fixed costs have increased.
output is declining.
marginal costs have increased.

6. A vertically integrated firm might own (Points : 1)

a ski factory, an Alpine resort hotel, and an emergency medical center.
several plants that manufacture different qualities of skis.
a ski factory, a cigar manufacturer, and a carpet factory.
several plants in different countries that manufacture skis.

7. The short run is (Points : 1)

less than six months.
more than six months, but less than a year.
in the short run, some productive resources may be fixed although some other resources may be varied.
the period of time in which all the productive resources can be varied.
the period of time in which all the inputs are fixed.

8. Which of the following is most likely to be an implicit cost of production? (Points : 1)

Wages paid to skilled workers
Payments for inputs purchased from other companies
Interest paid on a loan
Rental income from real property
Rental income not received from use of a self-owned piece of land

9. The technical relationship between inputs and outputs, which is needed to understand the difference between the short run and the long run, is called (Points : 1)

technical efficiency.
economic efficiency.
a production function.
a time and motion study.
supply and demand.

10. What is one thing that entrepreneurs do NOT do? (Points : 1)

They identify consumer demands.
They establish supply and demand.
They organize production.
They allocate resources.
They acquire assets.