Econ Ch. 13 Quiz

Ziva is an organic broccoli farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $40 an hour for her home-organization services. One spring day, Ziva spends 9 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of broccoli. Ziva's economic profit from farming equals a. $130. b. −$190. c. −$130. d. $170.

$-190

Jack's Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 300 units of output (car washes). The firm's total cost is a. $1,500. b. $300. c. $600. d. $900.

$1,500

What is the value of B? a. $50 b. $25 c. $200 d. $100

$100

What is the value of C? a. $200 b. $50 c. $25 d. $100

$100

What is the value of E? a. $150 b. $50 c. $25 d. $100

$100

What is the value of F? a. $100 b. $150 c. $200 d. $50

$150

Kelly has decided to start his own business giving sailing lessons. To purchase equipment for the business, Kelly withdrew $1,000 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. What is Kelly's annual opportunity cost of the financial capital that has been invested in the business? a. $30 b. $170 c. $300 d. $140

$170

Ziva is an organic broccoli farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $40 an hour for her home-organization services. One spring day, Ziva spends 9 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of broccoli. Ziva's accounting profit from farming equals a. $260. b. −$80. c. $130. d. $170.

$170

What is the value of A? a. $100 b. $50 c. $200 d. $25

$50

What is the value of D? a. $50 b. $100 c. $200 d. $25

$50

Taylor sells 400 candy bars at $0.50 each. Her total costs are $125. Her profits are a. $200.00. b. $125.00. c. $75.00. d. $124.50.

$75.00

Kate is a florist. Kate can arrange 15 bouquets per day. She is considering hiring her husband Amir to work for her. Together Kate and Amir can arrange 23 bouquets per day. What is Amir's marginal product? a. 23 bouquets b. 38 bouquets c. 8 bouquets d. 17 bouquets

8 bouquets

Total revenue equals: a. price x quantity b. output-input c. (price x quantity)-total cost d. price/quantity

Price x quantity

On a 250-acre farm, a farmer is able to produce 4,500 bushels of wheat when he hires 2 workers. He is able to produce 6,300 bushels of wheat when he hires 3 workers. Which of the following possibilities is consistent with the property of diminishing marginal product? a. The farmer is able to produce 8,500 bushels of wheat when he hires 4 workers. b. The farmer is able to produce 8,100 bushels of wheat when he hires 4 workers. c. The farmer is able to produce 8,300 bushels of wheat when he hires 4 workers. d. The farmer is able to produce 7,560 bushels of wheat when he hires 4 workers.

The farmer is able to produce 7,560 bushels of wheat when he hires 4 workers.

Marginal cost is equal to average total cost when a. average fixed cost is rising. b. average variable cost is falling. c. average total cost is at its minimum. d. marginal cost is at its minimum.

average total cost is at its minimum.

When marginal cost is less than average total cost, a. average total cost is falling. b. average variable cost must be falling. c. marginal cost must be falling. d. average total cost is rising.

average total cost is falling.

A firm produces 100 units of output at a total cost of $1,200. If fixed costs are $100, a. average total cost is $14. b. average total cost is $13. c. average variable cost is $11. d. average fixed cost is $12.

average variable cost is $11.

A firm's opportunity costs of production are equal to its a. explicit costs + implicit costs + total revenue b. explicit costs + implicit costs c. implicit costs only d. explicit costs only

explicit costs + implicit costs

Bubba is a shrimp fisherman who could earn $5,000 as a fishing tour guide. Instead, he is a full-time shrimp fisherman. In calculating the economic profit of his shrimp business, the $5,000 that Bubba gave up is counted as part of the shrimp business's: a. marginal costs. b. explicit costs. c. implicit costs. d. total revenue.

implicit costs

Suppose that a "doggie day care" firm uses only two inputs: hourly workers (labor) and a building (capital). In the short run, the firm most likely considers a. both labor and capital to be variable. b. both labor and capital to be fixed. c. labor to be variable and capital to be fixed. d. capital to be variable and labor to be fixed.

labor to be variable and capital to be fixed.

Economies of scale occur when a. long-run average total costs rise as output increases. b. average fixed costs are constant. c. long-run average total costs fall as output increases. d. average fixed costs are falling.

long-run average total costs fall as output increases.