For those blanks on the quiz that require you to fill in a word,
fill in the number that corresponds with the correct word or phrase.
This method eliminates the problem of answers being counted as
wrong because they were misspelled.
Click on GRAPH on the tab below for the graph referenced in Quiz 5.
1)	accounting		16)	inputs
2)	average		17)	labor
3)	capital		18)	labor-intensive
4)	capital-intensive		19)	land
5)	cost(s)		20)	long
6)	demand		21)	marginal
7)	diminishing		22)	output(s)
8)	down		23)	profit
9)	economic		24)	resources
10)	efficient		25)	revenue
11)	entrepreneurship		26)	short
12)	factors of production		27)	specialization
13)	firm		28)	supply
14)	goods and services		29)	technology
15)	increasing		30)	total
			31)	up

QUESTION 1

The production process combines and transforms A: into B: . In economics terms, the resources that are utilized by a firm are defined as C: - that is, natural resources or other real property resources (e.g. petroleum, wood, farms, etc.), D: - that is, human effort (e.g. anywhere from economics professors to people who actually produce something), and E: - that is, goods that produce goods (tools, equipment, machinery, buildings, etc.). Another important, but intangible resource is F: . This word is derived from the French term for risk taker. This is the person who envisions an unfulfilled G: for a good or service, and then organizes H: to fulfill it.

QUESTION 2

An organization consisting of a group of resource owners that come together to produce a good or service is known as a A: . The goal of this entity is to earn a B: - computed as total C: minus total D: .

QUESTION 3

For each of the blanks in this section, fill in a dollar amount -- no decimal points, no dollar signs.

Suppose that I could sell 100 zercs over the next week for $5 each. To produce this many zercs, I'd need $100 worth of wood, $50 worth of plastic and $30 worth of other materials. I'd also need to hire two workers and pay them $75 each, and I'd need to be working at the factory each day, as well. I would need to lease a zerc making machine from Home Depot that goes for $80 per week. During that week, I could work for Acme Widget Company for $70, Bill's Flange Corp. for $90 or Joe's Ditch Digging Service for $110. If I asked my accountant to compute my costs for the week, he'd tell me A: $. If I asked my economist to compute my costs, he'd tell me B: $

QUESTION 4

In considering the way that firms respond to changing economic variables, we must consider the time constraint. Basically, the time constraint can be divided into two categories: the A: run - a period of time that is insufficient to allow the firm to change its size, and the B: run - in which the firm size is variable. While there is no specific time limit for either, the former is easier to model because there are fewer variables.

QUESTION 5

Units of Input	Total Output	What is the marginal product of the fifth unit? A In this table, as more units of a particular input are employed, total output goes B: while marginal output goesC: . This phenomenon is due to the law of D: marginal returns.
1	10
2	18
3	25
4	30
5	33
6	35
7	36

QUESTION 6

For this question, use the second page of the Resource Sheet (click on the GRAPH tab at the bottom of the sheet).

This is the production function for warehouse workers at Acme Widget Co. Note that up to the fourth warehouse worker, the firm is experiencing A: marginal returns. One reason why we frequently observe this phenomenon at low levels of output is B: . That is, one worker can get good at one task, another worker can get good at something else, etc. This phenomenon continues up until the company has hired C: (enter number)workers. The marginal product of the third worker is D: (enter number)units of output. After the fourth worker, the firm is experiencing E: marginal returns, even though total returns are still F: as more warehouse workers are added. The marginal product of the sixth worker isG: (enter number)units of output.After the eighth worker, however, it is the H: returns start to diminish.

QUESTION 7

Because the marginal product of a variable resource initially increases and later decreases as a firm increases its output,

	A.	average variable cost decreases at first and then increases
	B.	marginal cost at first increases and then decreases
	C.	average fixed cost declines as the output of the firm expands
	D.	variable cost at first increases by increasing amounts and then increases by decreasing amounts