Question 1

Discuss the benefits of restricting business risk to the owners.

Accepted Answer

Many people deeply dislike risk and woul

Question 2

The concept of consumer sovereignty refers to the situation where consumers have the right to vote for the board of directors of large corporations.

Accepted Answer

A) True 
 B)False

Question 3

Refer to the diagram. Arrows (3)and (4)represent

Accepted Answer

A) goods and services, respectively. 
B) incomes and consumer expenditures, respectively. 
C) resources and goods, respectively. 
D) consumer expenditures and income, respectively. 
A) goods and services, respectively. 
B) incomes and consumer expenditures, respectively. 
C) resources and goods, respectively. 
D) consumer expenditures and income, respectively.

Question 4

Having a high fixed salary is what motivates entrepreneurs to make prudent decisions in dealing with business risk.

Accepted Answer

A) True 
 B)False

Question 5

A characteristic of the market system is

Accepted Answer

A) extensive use of direct or manual methods of production. 
B) a focus on labor, as opposed to capital resources. 
C) reliance on the use of capital goods in indirect modes of production. 
D) avoidance of producing goods that do not satisfy consumer wants directly. 
A) extensive use of direct or manual methods of production. 
B) a focus on labor, as opposed to capital resources. 
C) reliance on the use of capital goods in indirect modes of production. 
D) avoidance of producing goods that do not satisfy consumer wants directly.

Question 6

Suppose a firm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further that the firm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship at $9 per unit.   Refer to the provided table, and suppose that the firm uses production technique D. If each of the 70 units of Zenia that are produced sells for $1 apiece, then how much will be the total profits of the firm from 70 units of Zenia?

Accepted Answer

A) $70 
B) $57 
C) $13 
D) $83 
A) $70 
B) $57 
C) $13 
D) $83

Question 7

If a competitive industry is neither expanding nor contracting, we would expect

Accepted Answer

A) total revenue to be zero. 
B) economic profits to be zero. 
C) total opportunity cost to be zero. 
D) more resources to flow to that industry. 
A) total revenue to be zero. 
B) economic profits to be zero. 
C) total opportunity cost to be zero. 
D) more resources to flow to that industry.

Discuss the benefits of restricting business risk to the owners.

The concept of consumer sovereignty refers to the situation where consumers have the right to vote for the board of directors of large corporations.

Refer to the diagram. Arrows (3)and (4)represent

Having a high fixed salary is what motivates entrepreneurs to make prudent decisions in dealing with business risk.

A characteristic of the market system is

If a competitive industry is neither expanding nor contracting, we would expect

Limits, Alternatives, and Choices

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, RD, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters

Exam 2: The Market System and the Circular Flow

Discuss the benefits of restricting business risk to the owners.

The concept of consumer sovereignty refers to the situation where consumers have the right to vote for the board of directors of large corporations.

Refer to the diagram. Arrows (3)and (4)represent

Having a high fixed salary is what motivates entrepreneurs to make prudent decisions in dealing with business risk.

A characteristic of the market system is

If a competitive industry is neither expanding nor contracting, we would expect

Limits, Alternatives, and Choices

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, RD, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters