Question 1

___________ is the amount of money a company receives for selling its product or service.

Accepted Answer

A)  Profit 
B)  Revenue 
C)  Cost 
D)  Average marginal revenue 
A)  Profit 
B)  Revenue 
C)  Cost 
D)  Average marginal revenue

Question 2

The long-lived physical equipment and structures that a business uses in its production process are called

Accepted Answer

A)  boot. 
B)  land. 
C)  capital. 
D)  function. 
A)  boot. 
B)  land. 
C)  capital. 
D)  function.

Question 3

If a landscaper can hire an additional employee for $300 weekly,what is one concept the landscaper could use to determine whether hiring this employee is a good idea?

Accepted Answer

Marginal product can help a business own

Question 4

The short-term cost function assumes that

Accepted Answer

A)  All variable costs are equal. 
B)  Fixed costs can be easily changed. 
C)  Fixed costs can't be changed. 
D)  Variable costs can be fixed. 
A)  All variable costs are equal. 
B)  Fixed costs can be easily changed. 
C)  Fixed costs can't be changed. 
D)  Variable costs can be fixed.

Question 5

The additional money a business gets from producing and selling one more unit of output is

Accepted Answer

A)  marginal product. 
B)  long-term revenue. 
C)  marginal revenue. 
D)  average profit. 
A)  marginal product. 
B)  long-term revenue. 
C)  marginal revenue. 
D)  average profit.

Question 6

The technology or knowledge necessary for the production process is called

Accepted Answer

A)  Production input. 
B)  Business know-how. 
C)  Technology input. 
D)  Knowledge input. 
A)  Production input. 
B)  Business know-how. 
C)  Technology input. 
D)  Knowledge input.

Question 7

Theodore can make 6 pizzas in one hour.If Theodore's labor has a diminishing marginal product,what must be true about the number of pizzas that Theodore can make in three hours?

Accepted Answer

A)  It must be less than 12. 
B)  It must be less than 18. 
C)  It must be equal to 18. 
D)  It must be greater than 18. 
A)  It must be less than 12. 
B)  It must be less than 18. 
C)  It must be equal to 18. 
D)  It must be greater than 18.

Question 8

If Sara can produce 25 muffins for a total cost of $15,but her production process is subject to increasing marginal costs,which of the following could be the total cost of producing 100 muffins?

Accepted Answer

A)  $15. 
B)  $17.50. 
C)  $60. 
D)  $80. 
A)  $15. 
B)  $17.50. 
C)  $60. 
D)  $80.

Question 9

What is the difference between revenue and cost?

Accepted Answer

A)  Production. 
B)  Input. 
C)  Output. 
D)  Profit. 
A)  Production. 
B)  Input. 
C)  Output. 
D)  Profit.

Question 10

Fixed costs are also known as __________ costs because they are much harder for a business to change.

Accepted Answer

A)  short-term 
B)  long-term 
C)  variable 
D)  static 
A)  short-term 
B)  long-term 
C)  variable 
D)  static

Question 11

Profit is the difference between revenue and

Accepted Answer

A)  marginal product. 
B)  average product. 
C)  long-term costs. 
D)  cost. 
A)  marginal product. 
B)  average product. 
C)  long-term costs. 
D)  cost.

Question 12

_________ is the added cost to produce one more unit of output.

Accepted Answer

A)  Marginal product 
B)  Marginal revenue 
C)  Average cost 
D)  Marginal cost 
A)  Marginal product 
B)  Marginal revenue 
C)  Average cost 
D)  Marginal cost

Question 13

What word describes the money that customers pay for the output of a business?

Accepted Answer

A)  Cost. 
B)  Revenue. 
C)  Input. 
D)  Output. 
A)  Cost. 
B)  Revenue. 
C)  Input. 
D)  Output.

Question 14

The difference between long-term and short-term profit maximization is that in the short term,

Accepted Answer

A)  businesses focus on achieving as much profit as they can, given that fixed costs cannot be changed. 
B)  businesses focus on achieving as much profit as they can, given that they can vary all inputs, even to the point of shutting down. 
C)  businesses are not able to maximize profits because they can vary all of their inputs, making the calculations too complicated. 
D)  businesses focus on achieving as much profit as they can, but in the long term, businesses always eventually shut down. 
A)  businesses focus on achieving as much profit as they can, given that fixed costs cannot be changed. 
B)  businesses focus on achieving as much profit as they can, given that they can vary all inputs, even to the point of shutting down. 
C)  businesses are not able to maximize profits because they can vary all of their inputs, making the calculations too complicated. 
D)  businesses focus on achieving as much profit as they can, but in the long term, businesses always eventually shut down.

Question 15

Explain one of the ways a business may find more revenue from the product or service it sells.

Accepted Answer

A business can find ways to increase rev

Question 16

A production function tells you,given the inputs,what the output will be.

Accepted Answer

A) True 
 B)False

Question 17

______ shows the potential cost for each level of output.

Accepted Answer

A)  The product function 
B)  The average marginal cost 
C)  The cost function 
D)  The production process 
A)  The product function 
B)  The average marginal cost 
C)  The cost function 
D)  The production process

Question 18

In the process of long-term profit maximization,the business makes decisions under the assumption that it can

Accepted Answer

A)  change only short-term costs. 
B)  change only long-term costs. 
C)  vary all the inputs. 
D)  eliminate all unnecessary expenses. 
A)  change only short-term costs. 
B)  change only long-term costs. 
C)  vary all the inputs. 
D)  eliminate all unnecessary expenses.

Question 19

Marginal cost is the added expense of producing one more unit of output.

Accepted Answer

A) True 
 B)False

Question 20

A profit-maximizing business will increase production as long as

Accepted Answer

A)  marginal cost exceeds marginal revenue. 
B)  marginal price exceeds average product. 
C)  average product exceeds marginal price. 
D)  marginal revenue exceeds marginal cost. 
A)  marginal cost exceeds marginal revenue. 
B)  marginal price exceeds average product. 
C)  average product exceeds marginal price. 
D)  marginal revenue exceeds marginal cost.

___________ is the amount of money a company receives for selling its product or service.

The long-lived physical equipment and structures that a business uses in its production process are called

If a landscaper can hire an additional employee for $300 weekly,what is one concept the landscaper could use to determine whether hiring this employee is a good idea?

The short-term cost function assumes that

The additional money a business gets from producing and selling one more unit of output is

The technology or knowledge necessary for the production process is called

Theodore can make 6 pizzas in one hour.If Theodore's labor has a diminishing marginal product,what must be true about the number of pizzas that Theodore can make in three hours?

If Sara can produce 25 muffins for a total cost of $15,but her production process is subject to increasing marginal costs,which of the following could be the total cost of producing 100 muffins?

What is the difference between revenue and cost?

Fixed costs are also known as __________ costs because they are much harder for a business to change.

Profit is the difference between revenue and

_________ is the added cost to produce one more unit of output.

What word describes the money that customers pay for the output of a business?

The difference between long-term and short-term profit maximization is that in the short term,

Explain one of the ways a business may find more revenue from the product or service it sells.

A production function tells you,given the inputs,what the output will be.

______ shows the potential cost for each level of output.

In the process of long-term profit maximization,the business makes decisions under the assumption that it can

Marginal cost is the added expense of producing one more unit of output.

A profit-maximizing business will increase production as long as

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters

Exam 4: How Businesses Work

___________ is the amount of money a company receives for selling its product or service.

The long-lived physical equipment and structures that a business uses in its production process are called

If a landscaper can hire an additional employee for $300 weekly,what is one concept the landscaper could use to determine whether hiring this employee is a good idea?

The short-term cost function assumes that

The additional money a business gets from producing and selling one more unit of output is

The technology or knowledge necessary for the production process is called

Theodore can make 6 pizzas in one hour.If Theodore's labor has a diminishing marginal product,what must be true about the number of pizzas that Theodore can make in three hours?

If Sara can produce 25 muffins for a total cost of $15,but her production process is subject to increasing marginal costs,which of the following could be the total cost of producing 100 muffins?

What is the difference between revenue and cost?

Fixed costs are also known as __________ costs because they are much harder for a business to change.

Profit is the difference between revenue and

_________ is the added cost to produce one more unit of output.

What word describes the money that customers pay for the output of a business?

The difference between long-term and short-term profit maximization is that in the short term,

Explain one of the ways a business may find more revenue from the product or service it sells.

A production function tells you,given the inputs,what the output will be.

______ shows the potential cost for each level of output.

In the process of long-term profit maximization,the business makes decisions under the assumption that it can

Marginal cost is the added expense of producing one more unit of output.

A profit-maximizing business will increase production as long as

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters