ECO 204 Week 3 Quiz | Assignment Help | Ashford University
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- 23 Aug 2020
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ECO 204 Week 3 Quiz | Assignment Help | Ashford University
Week 3 - Quiz
Question 1
If the marginal product
is ¬¬¬__________, total product is declining.
o
positive
o
increasing
o
negative
o
stable
Question 2
The principles of
production are a foundation for __________.
o
Establishing ownership
o
The laws of supply and demand
o
Analyzing costs
o
Entrepreneurship
Question 3
Entrepreneurs who set
up firms typically do NOT __________.
o
Allocate resources
o
Acquire assets
o
Establish supply and demand
o
Organize production and distribution
Question 4Regarding
production functions in the short run, __________.
o
all inputs are variable
o
some inputs are variable and some are
fixed
o
some variable inputs cannot be
determined
o
all inputs are fixed
Question 5
When the marginal
product is higher than the average product, the __________.
o
total product is decreasing
o
average product is increasing
o
marginal product is negative
o
total product is at its peak
Question 6
Which of the following
formulas determines accounting profit?
o
total revenue – (explicit costs +
implicit costs)
o
total revenue – explicit costs
o
total revenue – opportunity costs
o
total revenue – implicit costs
Question 7
A company’s profits are
greatest when __________ by the largest possible amount.
o
short-run profits exceed long-run
profits
o
marginal revenue exceeds total revenue
o
explicit costs exceed opportunity costs
o
total revenue exceeds total cost
Question 8
The short-run marginal
cost curve falls and then rises because of __________.
o
diseconomies and economies of scale
o
fixed costs
o
the principle of diminishing returns
o
diseconomies of scale
Question 9
As
AdirondackChairsPlus.com’s plant size grew, it became more productive and cost
effective to run. However, as its scale increased too much, it became less
efficient and incurred higher long-run average costs. This second scenario
reflects __________.
o
average cost savings
o
economies of scale
o
short-run expenditures
o
diseconomies of scale
Question 10
Economists define the
long run
as the period long
enough so that all __________.
o
costs are fixed
o
inputs can vary
o
resources are fixed
o
outputs can vary
USA 
India