Economics Quiz-5

03 Jul Economics Quiz-5

• Due Feb 26 at 11:59pm
• Points 10
• Questions 10
• Available until Feb 27 at 4am
• Time Limit 30 Minutes
• Allowed Attempts 2

 

Instructions

 

For each of the 12 units of the course, you are required to take a quiz. The quizzes serve multiple purposes:

 

1. To assess your knowledge of the material. This is a minor aspect, though — each quiz only counts for 2 points out of 100.
2. To give you practice for the exams. The multiple choice questions for the exams are similar to those on the quizzes. In addition, the quiz questions — especially the ones with the graphs — should help you with the short-essay answer portion of each exam.
3. To enhance your learning of course materials by having you answer questions that explore the course subject matter.

 

Instructions:

 

• You may take each unit’s quiz twice, and you will receive credit for the higher of the two grades if you do so. Questions will be drawn at random from a pool of quiz questions, so each quiz for a given unit will be a bit different.
• The course calendar spells out the due dates for each quiz.
• When you are ready to take this quiz, click on the link below to begin. Once you begin the quiz you will have 30 minutes to complete the 10 questions and submit your responses.
• Once you begin, you must complete the quiz in one sitting.
• The clock will start when you begin and will continue to run even if you go back to another page or log out of Canvas. Please don’t begin the quiz unless you have 30 minutes to complete it!
• Once time has expired, your quiz will be automatically submitted, even if you have not answered all the questions.

 

Should you encounter any problems in completing a quiz, please write and inform your instructor as soon as possible.

 

Attempt History

 

	Attempt	Time	Score
LATEST	Attempt 1	11 minutes	10 out of 10

 

Score for this attempt: 10 out of 10

 

Submitted Feb 24 at 5:25am

 

This attempt took 11 minutes.

 

 

 

Question 1

 

1 / 1 pts

 

Economic profit

 

 

 

is the same as accounting profit.

 

 

 

is always larger than accounting profit.

 

 

 

is equal to total revenue less explicit costs

 

is never larger than accounting profit

 

Question 2

 

1 / 1 pts

 

Dexter is an accountant earning $45,000 per year but he hates his job. Dexter decides to leave his accounting job and start his own white water rafting guided tour business. He needs $80,000 to start his business. Dexter has $40,000 in savings that he will use to start his new business and he borrows the remaining $40,000 from a bank. The interest rate is 3%. The explicit cost of opening Dexter’s white water rafting business is ____ and the implicit cost of opening the new business is ______.

 

 

 

$80,000; $45,000

 

 

 

$2,400; $45,000

 

$1,200; $46,200

 

 

 

$127,400; $0

 

Question 3

 

1 / 1 pts

 

Labor	Output	Variable Cost	Fixed Cost	Total Cost
0	0			12
1	10	5
2	18			22
3	24	15
4	28	20		32

 

 

 

Consider the table above. What is the marginal product of the second worker?

 

 

 

5

 

8

 

 

 

10

 

 

 

18

 

Question 4

 

1 / 1 pts

 

Labor	Output
0	0
1	8
2	14
3	18
4	20

 

Consider the table above. What is the Marginal product of the 3rd worker?

 

 

 

2

 

 

 

 

 

4

 

 

 

18

 

 

 

20

 

 

 

 

 

Question 5

 

1 / 1 pts

 

The production function shows the relationship between

 

 

 

a firm’s profit and the quantity of output produced.

 

 

 

the average product of labor and the quantity of labor used in the production process.

 

 

 

the cost of production and the quantity of output produced.

 

the inputs to production and the quantity of output produced.

 

 

 

Question 6

 

1 / 1 pts

 

 

 

Consider the graph above. The slope of the production function reflects

 

 

 

increasing marginal product

 

 

 

decreasing average product

 

 

 

increasing marginal cost

 

 

 

decreasing marginal cost.

 

 

 

Question 7

 

1 / 1 pts

 

Which of the costs below do not vary when a firm changes its level of production?

 

 

 

 

 

fixed cost

 

 

 

average fixed cost

 

 

 

average total cost

 

 

 

Total cost

 

 

 

Question 8

 

1 / 1 pts

 

Marginal cost will eventually rise as production expands due to

 

 

 

increased specialization

 

 

 

economies of scale

 

 

 

diminishing marginal product

 

 

 

the presence of fixed costs

 

 

 

Question 9

 

1 / 1 pts

 

Output	Variable Cost	Fixed Cost	Total Cost
0			14
1	5
2			24
3	15
4	20		34

 

The marginal cost of producing the 3rd unit of output is

 

 

 

$10

 

 

 

$15

 

 

 

$24

 

 

 

$5

 

 

 

Question 10

 

1 / 1 pts

 

Diseconomies of scale occur

 

 

 

when long run ATC is constant as output is varied.

 

 

 

when long run ATC decreases as output expands.

 

 

 

when short run ATC decreases as output expands.

 

 

 

when long run ATC increases as output expands.