Question 1

The Dandy Company is a firm that owns a car rental agency, a French bakery, a modeling agency, and a pet store. An economist would describe the Dandy Company as __________.

Group of answer choices

A. a conglomerate

B. horizontally integrated

C. vertically integrated

D. a perfect competitor

Question 2

If the marginal product is __________, total product is declining.

Group of answer choices

A. negative

B. positive

C. stable

D. increasing

Question 3

A description of the amounts of output expected from various combinations of inputs is called __________.

Group of answer choices

A. an economic forecast

B. economic efficiency

C. a production function

D. technical efficiency

Question 4

What is themarginal product of labor?

Group of answer choices

A. the change in total output divided by the total number of workers.

B. the change in the output produced by the addition of one more worker.

C. the difference between the average output of labor and the average output of capital.

D. the total output divided by the quantity of labor.

Question 5

When the marginal product is higher than the average product, the __________.

Group of answer choices

A. total product is decreasing

B. total product is at its peak

C. average product is increasing

D. marginal product is negative

Question 6

Examples of total variable costs (TVC) include wages and __________.

Group of answer choices

A. utilities

B. rent

C. loan payments

D. insurance

Question 7

Which of the following formulas determinesaccounting profit?

Group of answer choices

A. total revenue - explicit costs

B. total revenue - (explicit costs + implicit costs)

C. total revenue - opportunity costs

D. total revenue - implicit costs

Question 8

A firm should leave production unchanged when __________.

Group of answer choices

A. marginal cost marginal revenue

B. marginal cost > marginal revenue

C. marginal cost = marginal revenue

D. marginal cost < marginal revenue

Question 9

Harry gives his granddaughter Darla a yacht worth $120,000. She can keep the yacht to take her business clients fishing, or she can sell it. When Darla asks herself, "Is this asset more valuable as a $120,000 investment if I sell it or as part of my firm's capital?" she is really considering __________.

Group of answer choices

A. implicit costs

B. opportunity costs

C. economic profit

D. normal profit

Question 10

Last spring, Coil Spring Co. reported that average fixed costs had increased but average variable costs were unchanged. This indicates that __________.

Group of answer choices

A. output is declining

B. marginal costs have increased

C. marginal costs are less than average variable cost but greater than average cost

D. fixed costs have increased