ECO 204 Week 3 Quiz | Assignment Help | Ashford University
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- 23 Nov 2020
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ECO 204 Week 3 Quiz | Assignment Help | Ashford University
Week 3 - Quiz
Question 1
What does the principle
of diminishing returns state?
o
As more units of a variable input are
added to a set of fixed inputs, the resulting additions to output eventually
become increasingly smaller.
o
In the short run, at least one input is
fixed.
o
As more units of a variable input are
added to another set of variable inputs, output will increase or diminish,
depending on the ratio of the input sets.
o
In the long run, fixed inputs are added
to variable inputs.
Question 2
What is the marginal
product of labor?
o
the change in total output divided by
the total number of workers.
o
the change in the output produced by the
addition of one more worker.
o
the difference between the average
output of labor and the average output of capital.
o
the total output divided by the quantity
of labor.
Question 3
A firm that owns a
wheat farm, a grain elevator, a flour mill, a commercial bakery, and a grocery
store chain is __________.
o
vertically integrated
o
horizontally integrated
o
a monopoly
o
a conglomerate
Question 4
The principles of
production are a foundation for __________.
o
establishing ownership
o
entrepreneurship
o
the laws of supply and demand
o
analyzing costs
Question 5
What do economists call
the process of transforming inputs, or resources, into marketable outputs?
o
efficiency
o
construction
o
production
o
conglomeration
Question 6
When Henry Ford introduced
the assembly line to his automobile manufacturing plant, he significantly
improved his company’s ¬¬¬¬__________.
o
small-scale production
o
economy of scale
o
profit minimization
o
short-run average cost
Question 7
Guido’s Travel Agency
had accounting profits of $50,000 and implicit costs of $30,000. What is its
economic profit?
o
$50,000
o
$20,000
o
$30,000
o
$80,000
Question 8
The rate of return that
is necessary to keep capital and enterprise in an industry is known as
__________ profit.
o
accounting
o
opportunity
o
economic
o
normal
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 __________.
o
normal profit
o
implicit costs
o
economic profit
o
opportunity costs
Question 10
Which of the following
always decreases as output increases?
o
average cost
o
fixed cost
o
marginal fixed cost
o
average fixed cost
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