Question 1 1 out of 1 points Opportunity cost of an activity Selected Answer: d. May include both monetary costs and foregone incomes Answers: a. Is included in accounting costs b. Is k ...

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Question 1
1 out of 1 points

Opportunity cost of an activity
Selected Answer: d.
May include both monetary costs and foregone incomes
Answers: a.
Is included in accounting costs
b.
Is known with certainty
c.
Does not include monetary costs
d.
May include both monetary costs and foregone incomes
Question 2
1 out of 1 points

If a firm is earning negative economic profits, it implies
Selected Answer: c.
Economic profits alone cannot determine accounting profits
Answers: a.
That the firm’s accounting profits are necessarily zero
b.
That the firm’s accounting profits are necessarily positive
c.
Economic profits alone cannot determine accounting profits
d.
That the firm’s accounting profits are necessarily negative
Question 3
1 out of 1 points

The difference between Capitalism and Socialism is that
Selected Answer: c.
Capitalism is concerned with making the “pie” as large as possible
Answers: a.
Capitalism is concerned more about how to slice up the “pie”
b.
Socialism is concerned with making the “pie” as large as possible

c.
Capitalism is concerned with making the “pie” as large as possible
d.
Both A and B
Question 4
1 out of 1 points

An example of price floor is
Selected Answer: a.
Minimum wages
Answers: a.
Minimum wages
b.
Rent controls in New York
c.
Both a and b
d.
None of the above
Question 5
1 out of 1 points

You are at an all-you-can-eat-buffet. You feel almost full. However they just brought out your
favorite dessert and you can either choose to eat that or a helping of tapioca pudding. If you
choose the cupcakes, the pudding would be your
Selected Answer: c.
Opportunity cost
Answers: a.
Variable cost
b.
Sunk cost
c.
Opportunity cost
d.
Fixed cost
Question 6
1 out of 1 points

A consumer values a car at $30,000 and a producer values the same car at $20,000. If a tax is
levied on the seller, what level of tax will result in unconsummated transaction?

Selected Answer: a.
60%
Answers: a.
60%
b.
40%
c.
25%
d.
0%
Question 7
1 out of 1 points

Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a
$60,000 loan at an annual interest rate of 5% to purchase a hardware store. After one year,
Scott sold the business for $4,100,000. His economic profits is:
Selected Answer: a.
None. He runs an economic loss of $103,000
Answers: a.
None. He runs an economic loss of $103,000
b.
$300,000
c.
$97000
d.
$100,000
Question 8
1 out of 1 points

Firm X is producing 1000 units, selling them at $15 each. Variable costs are $3 per unit and the
firm is making an accounting profit of $3000. What is the firm’s total variable costs?
Selected Answer: d.
$3000
Answers: a.
$5,000
b.
$7,000
c.

$1000
d.
$3000
Question 9
1 out of 1 points

The biggest advantage of capitalism is that
Selected Answer: b.
It creates wealth by letting a person follo