AGEC 324 Final Exam With Correct
And Verified Answers
There fis fno flimit fon fthe famount fof fyour fearned fincome fsubject fto fsocial fsecurity
ftaxation f- fCORRECT✅✅False
The fUS fFederal fTax fCode fis fwhich fof fthe ffollowing fwith frespect fto fmarginal ftax
fbrackets fas ftaxpayers' ftaxable fincome fincreases: f- fCORRECT✅✅progressive
This fterm frefers fto fthe famount fof floss fa fcustomer fmust fpay fbefore fhis/her finsurance
fcompany fwill fcompensate fhim/her ffor fthe fremaining famount fof floss. f-
fCORRECT✅✅Deductible
This fterm frefers fto fthe famount fa fcustomer fpays fan finsurance fcompany fto fobtain for
fmaintain fan finsurance fpolicy fand ffor fthe finsurance fcompany fto fassume fpart fof fthe
frisk fassociated fwith fa fcatastrophic floss f- fCORRECT✅✅Premium
This fterm frefers fto fthe famount fan finsurance fcompany fpays fone fof fits fcustomers
fwhen fhe/she fincurs fa fcatastrophic floss fcovered fby fhis/her finsurance fpolicy fwith fthat
finsurance fcompany f- fCORRECT✅✅indemnity
Stage fII fof fproduction fis fwhere fthe fmarginal fphysical fproduct fis fnegative f-
fCORRECT✅✅false
stage fI fof fproduction fis fwhere fthe fmarginal fphysical fproduct flies fabove fthe faverage
fphysical fproduct fcurve f- fCORRECT✅✅true
How fmany fstages fof fproduction fare fin fa fclassical fproduction ffunction? f-
fCORRECT✅✅3
An fenterprise fbudget fprovides fan festimate fof fthe fpotential frevenue, fexpenses fand
fprofit ffor fa fsingle fenterprise f- fCORRECT✅✅true
A fproduction ffunction fis fthe frelationship fbetween fthe fquantity fof finputs fa ffirm fuses
fand f_____? f- fCORRECT✅✅a fquantity fof foutput fit fproduces
Fixed fcosts fexist fonly fin fthe fshort frun f- fCORRECT✅✅true
diesel f- fCORRECT✅✅variable fcost
property ftaxes f- fCORRECT✅✅fixed fcost
, Insurance f- fCORRECT✅✅fixed fcost
chicken ffingers f- fCORRECT✅✅variable fcost
labor fhired fon fan fhourly fbasis f- fCORRECT✅✅variable fcost
accounting fprofit fincludes fboth fexplicit fand fimplicit fcosts f- fCORRECT✅✅false
Milton fFriedman fsaid fthat f"there fis fno fsuch fthing fas fa ffree flunch." fWhat fdoes fthis
fmean? f- fCORRECT✅✅In fa fworld fof fscarcity, feverything fhas fan fopportunity fcost
What fis fthe forder fof fcurves fon fa fShort-run fcost fcurve fgraph f(lowest fto fhighest) f-
fCORRECT✅✅Average ffixed fcost
Average fvariable fcost
Average ftotal fcost
What fare fthe funits fof fthe fX-axis fon fa fcost fcurve f- fCORRECT✅✅output
When fis ftotal fvariable fcosts fzero fwhen fthere fis fno fproduction f- fCORRECT✅✅in fthe
fshort frun
When fis fATC fat fits fminimum fvalue f- fCORRECT✅✅at fthe foutput flevel fwhere fMC fis
fjust fequal fto fATC
What fare fcosts fthat fincrease for fdecrease fin fproportion fto fthe funits fof fan fenterprise
fthat fare fcarried fout f- fCORRECT✅✅variable fcosts
At fthe fend fof fchapter f2, fwhat fis fMr. fGomez's fadvice f- fCORRECT✅✅Choose fyour
ffriends fwisely
U.S. fmedicare ftax frates fare f______ fas ftaxpayer's fnet fincome fincreases f-
fCORRECT✅✅constant
In fAGEC f324, fwhich fdepreciation fmethod fis fused? f- fCORRECT✅✅Straight-line
The flong-run faverage fcost fcurve fis fcomprised fof fpoints fon fa fseries fof fshort-run
faverage fcost fcurves f- fCORRECT✅✅true
Supplementary fenterprises fare fthose fwhere_____ f- fCORRECT✅✅the foutput fof fone
fcan fbe fincreased fwith fno fchange fin fthe foutput fof fthe fother
complementary fenterprises fare fenterprises ffor fwhich fincreasing fthe foutput flevel fof
fone falso fincreases fthe foutput flevel fof fthe fother f- fCORRECT✅✅true
And Verified Answers
There fis fno flimit fon fthe famount fof fyour fearned fincome fsubject fto fsocial fsecurity
ftaxation f- fCORRECT✅✅False
The fUS fFederal fTax fCode fis fwhich fof fthe ffollowing fwith frespect fto fmarginal ftax
fbrackets fas ftaxpayers' ftaxable fincome fincreases: f- fCORRECT✅✅progressive
This fterm frefers fto fthe famount fof floss fa fcustomer fmust fpay fbefore fhis/her finsurance
fcompany fwill fcompensate fhim/her ffor fthe fremaining famount fof floss. f-
fCORRECT✅✅Deductible
This fterm frefers fto fthe famount fa fcustomer fpays fan finsurance fcompany fto fobtain for
fmaintain fan finsurance fpolicy fand ffor fthe finsurance fcompany fto fassume fpart fof fthe
frisk fassociated fwith fa fcatastrophic floss f- fCORRECT✅✅Premium
This fterm frefers fto fthe famount fan finsurance fcompany fpays fone fof fits fcustomers
fwhen fhe/she fincurs fa fcatastrophic floss fcovered fby fhis/her finsurance fpolicy fwith fthat
finsurance fcompany f- fCORRECT✅✅indemnity
Stage fII fof fproduction fis fwhere fthe fmarginal fphysical fproduct fis fnegative f-
fCORRECT✅✅false
stage fI fof fproduction fis fwhere fthe fmarginal fphysical fproduct flies fabove fthe faverage
fphysical fproduct fcurve f- fCORRECT✅✅true
How fmany fstages fof fproduction fare fin fa fclassical fproduction ffunction? f-
fCORRECT✅✅3
An fenterprise fbudget fprovides fan festimate fof fthe fpotential frevenue, fexpenses fand
fprofit ffor fa fsingle fenterprise f- fCORRECT✅✅true
A fproduction ffunction fis fthe frelationship fbetween fthe fquantity fof finputs fa ffirm fuses
fand f_____? f- fCORRECT✅✅a fquantity fof foutput fit fproduces
Fixed fcosts fexist fonly fin fthe fshort frun f- fCORRECT✅✅true
diesel f- fCORRECT✅✅variable fcost
property ftaxes f- fCORRECT✅✅fixed fcost
, Insurance f- fCORRECT✅✅fixed fcost
chicken ffingers f- fCORRECT✅✅variable fcost
labor fhired fon fan fhourly fbasis f- fCORRECT✅✅variable fcost
accounting fprofit fincludes fboth fexplicit fand fimplicit fcosts f- fCORRECT✅✅false
Milton fFriedman fsaid fthat f"there fis fno fsuch fthing fas fa ffree flunch." fWhat fdoes fthis
fmean? f- fCORRECT✅✅In fa fworld fof fscarcity, feverything fhas fan fopportunity fcost
What fis fthe forder fof fcurves fon fa fShort-run fcost fcurve fgraph f(lowest fto fhighest) f-
fCORRECT✅✅Average ffixed fcost
Average fvariable fcost
Average ftotal fcost
What fare fthe funits fof fthe fX-axis fon fa fcost fcurve f- fCORRECT✅✅output
When fis ftotal fvariable fcosts fzero fwhen fthere fis fno fproduction f- fCORRECT✅✅in fthe
fshort frun
When fis fATC fat fits fminimum fvalue f- fCORRECT✅✅at fthe foutput flevel fwhere fMC fis
fjust fequal fto fATC
What fare fcosts fthat fincrease for fdecrease fin fproportion fto fthe funits fof fan fenterprise
fthat fare fcarried fout f- fCORRECT✅✅variable fcosts
At fthe fend fof fchapter f2, fwhat fis fMr. fGomez's fadvice f- fCORRECT✅✅Choose fyour
ffriends fwisely
U.S. fmedicare ftax frates fare f______ fas ftaxpayer's fnet fincome fincreases f-
fCORRECT✅✅constant
In fAGEC f324, fwhich fdepreciation fmethod fis fused? f- fCORRECT✅✅Straight-line
The flong-run faverage fcost fcurve fis fcomprised fof fpoints fon fa fseries fof fshort-run
faverage fcost fcurves f- fCORRECT✅✅true
Supplementary fenterprises fare fthose fwhere_____ f- fCORRECT✅✅the foutput fof fone
fcan fbe fincreased fwith fno fchange fin fthe foutput fof fthe fother
complementary fenterprises fare fenterprises ffor fwhich fincreasing fthe foutput flevel fof
fone falso fincreases fthe foutput flevel fof fthe fother f- fCORRECT✅✅true
