CHAPTER 7-8 PRETESTS QUESTIONS
WITH CORRECT ANSWERS 2025
$52,000.H-HcorrectHanswer-
AHyoungHchefHinHconsideringHopeningHhisHownHsushiHbar.HToHdoHso,HwouldHhaveHtoHquitHhisHcurrentHjob,Hw
hichHpaysH$20,000HaHyear,HandHtakeHoverHaHstoreHbuildingHthatHheHownsHandHcurrentlyHrentsHtoHhisHbrothe
rHforH$6,000HaHyear.HHisHexpensesHatHtheHsushiHbarHwouldHbeH$50,000HforHfoodHandH$2,000HforHgasHandHel
ectricity.HWhatHareHhisHexplicitHcosts?H
a.H$26,000.H
b.H$66,000.H
c.H$70,000.H
d.H$52,000.H
e.H$72,000.
TheHfirmHowner'sHtime.H-HcorrectHanswer-WhichHofHtheHfollowingHisHnotHanHexplicitHcost?H
a.HSalaries.H
b.HSalesHtaxes.H
C.HUtilities,HsuchHasHgasHandHelectricity.H
d.HInsurance.H
e.HTheHfirmHowner'sHtime.
implicitHcost.H-HcorrectHanswer-
TheHamountHofHmoneyHthatHcouldHhaveHbeenHmadeHbyHrentingHaHpieceHofHlandHtoHbeHusedHforHbuildingHan
HofficeHbuildingHinsteadHofHusingHtheHlandHforHemployeeHparkingHisHa(n):H
a.HimplicitHcost.H
b.HaccountingHcost.H
c.HexplicitHcost.H
d.HpureHeconomicHcont.
, lessHthanHaccountingHprofitHifHimplicitHcostsHareHgreaterHthanHzero.H-HcorrectHanswer-EconomicHprofitHis:H
a.HalwaysHlessHthanHzero.H
b.HneverHlessHthanHaccountingHprofit.H
C.HlessHthanHaccountingHprofitHifHimplicitHcostsHareHzero.H
d.HlessHthanHaccountingHprofitHifHimplicitHcostsHareHgreaterHthanHzero.
zeroHeconomicHprofit.H-HcorrectHanswer-AnHeconomistHleftHherH$100,000-a-
yearHteachingHpositionHtoHworkHfull-
timeHinHherHownHconsultingHbusiness.HInHtheHfirstHyear,HsheHhadHtotalHrevenueHofH$200,000HandHbusinessH
expensesHofH$100,H000.HSheHmadeHaH(an):H
a.HeconomicHprofit.H
b.HeconomicHIoss.
C.HimplicitHprofit.H
d.HaccountingHloss,HbutHnotHanHeconomicHloss.
e.HzeroHeconomicHprofit.
AllHofHtheHabove.H-HcorrectHanswer-WhichHofHtheHfollowingHisHanHexampleHofHaHfixedHinput?H
a.HTheHacreageHofHaHfarmer'sHland.H
b.HMachinery.H
c.HTheHsizeHofHaHfirm'sHplant.H
d.HAllHofHtheHabove.
canHbeHchangedHasHoutputHchanges.H-HcorrectHanswer-VariableHinputsHareHdefinedHasHanyHresourceHthat:H
a.HvariesHwithHtheHsizeHofHtheHfirm'sHplant.H
b.HcannotHbeHchangedHasHoutputHchanges.H
WITH CORRECT ANSWERS 2025
$52,000.H-HcorrectHanswer-
AHyoungHchefHinHconsideringHopeningHhisHownHsushiHbar.HToHdoHso,HwouldHhaveHtoHquitHhisHcurrentHjob,Hw
hichHpaysH$20,000HaHyear,HandHtakeHoverHaHstoreHbuildingHthatHheHownsHandHcurrentlyHrentsHtoHhisHbrothe
rHforH$6,000HaHyear.HHisHexpensesHatHtheHsushiHbarHwouldHbeH$50,000HforHfoodHandH$2,000HforHgasHandHel
ectricity.HWhatHareHhisHexplicitHcosts?H
a.H$26,000.H
b.H$66,000.H
c.H$70,000.H
d.H$52,000.H
e.H$72,000.
TheHfirmHowner'sHtime.H-HcorrectHanswer-WhichHofHtheHfollowingHisHnotHanHexplicitHcost?H
a.HSalaries.H
b.HSalesHtaxes.H
C.HUtilities,HsuchHasHgasHandHelectricity.H
d.HInsurance.H
e.HTheHfirmHowner'sHtime.
implicitHcost.H-HcorrectHanswer-
TheHamountHofHmoneyHthatHcouldHhaveHbeenHmadeHbyHrentingHaHpieceHofHlandHtoHbeHusedHforHbuildingHan
HofficeHbuildingHinsteadHofHusingHtheHlandHforHemployeeHparkingHisHa(n):H
a.HimplicitHcost.H
b.HaccountingHcost.H
c.HexplicitHcost.H
d.HpureHeconomicHcont.
, lessHthanHaccountingHprofitHifHimplicitHcostsHareHgreaterHthanHzero.H-HcorrectHanswer-EconomicHprofitHis:H
a.HalwaysHlessHthanHzero.H
b.HneverHlessHthanHaccountingHprofit.H
C.HlessHthanHaccountingHprofitHifHimplicitHcostsHareHzero.H
d.HlessHthanHaccountingHprofitHifHimplicitHcostsHareHgreaterHthanHzero.
zeroHeconomicHprofit.H-HcorrectHanswer-AnHeconomistHleftHherH$100,000-a-
yearHteachingHpositionHtoHworkHfull-
timeHinHherHownHconsultingHbusiness.HInHtheHfirstHyear,HsheHhadHtotalHrevenueHofH$200,000HandHbusinessH
expensesHofH$100,H000.HSheHmadeHaH(an):H
a.HeconomicHprofit.H
b.HeconomicHIoss.
C.HimplicitHprofit.H
d.HaccountingHloss,HbutHnotHanHeconomicHloss.
e.HzeroHeconomicHprofit.
AllHofHtheHabove.H-HcorrectHanswer-WhichHofHtheHfollowingHisHanHexampleHofHaHfixedHinput?H
a.HTheHacreageHofHaHfarmer'sHland.H
b.HMachinery.H
c.HTheHsizeHofHaHfirm'sHplant.H
d.HAllHofHtheHabove.
canHbeHchangedHasHoutputHchanges.H-HcorrectHanswer-VariableHinputsHareHdefinedHasHanyHresourceHthat:H
a.HvariesHwithHtheHsizeHofHtheHfirm'sHplant.H
b.HcannotHbeHchangedHasHoutputHchanges.H
