CHAPTER 7-8 PRETESTS QUESTIONS ee ee ee
WITH CORRECT ANSWERS 2025
ee ee ee ee
$52,000. ee - ee correct ee answer-
A eeyoung eechef eein eeconsidering eeopening eehis eeown eesushi eebar. eeTo eedo eeso, eewould eehave eeto eequit eehis
eecurrent eejob, eew eehich eepays ee$20,000 eea eeyear, eeand eetake ee over eea eestore ee building eethat ee he ee owns eeand
eecurrently ee rents ee to ee his eebrothe e e r eefor ee$6,000 eea eeyear. eeHis eeexpenses eeat eethe eesushi eebar eewould
eebe ee$50,000 eefor eefood eeand ee$2,000 eefor eegas eeand eeel eeectricity. eeWhat eeare eehis eeexplicit eecosts?
a. $26,000.
b. $66,000.
c. $70,000.
d. $52,000.
e. $72,000.
The ee firm eeowner's ee time. ee- eecorrect ee answer-Which eeof ee the ee following ee is ee not ee an eeexplicit ee cost?
a. Salaries.
b. Sales ee taxes.
C. ee Utilities, ee such ee as ee gas ee and ee electricity.
d. Insurance.
e. The ee firm ee owner's ee time.
implicit eecost. ee - ee correct ee answer-
The eeamount eeof eemoney eethat eecould eehave eebeen eemade eeby eerenting eea eepiece eeof eeland eeto eebe eeused
eefor eebuilding eean eeoffice eebuilding eeinstead eeof eeusing eethe eeland eefor eeemployee eeparking eeis eea(n):
a. implicit ee cost.
b. accounting eecost.
c. explicit eecost.
d. pure eeeconomic ee cont.
, less eethan eeaccounting eeprofit eeif eeimplicit eecosts ee are eegreater eethan eezero. ee- eecorrect ee answer-Economic
ee profit eeis:
a. always ee less eethan ee zero.
b. never eeless eethan eeaccounting eeprofit.
C. ee less ee than ee accounting ee profit ee if ee implicit eecosts eeare ee zero.
d. ee less eethan eeaccounting eeprofit ee if ee implicit ee costs ee are ee greater ee than eezero.
zero eeeconomic eeprofit. ee- eecorrect eeanswer-An eeeconomist eeleft eeher
ee$100,000-a- eeyear eeteaching eeposition eeto eework eefull-
time eein eeher eeown eeconsulting eebusiness. eeIn eethe eefirst eeyear, eeshe eehad eetotal eerevenue eeof ee$200,000
eeand eebusiness eeexpenses eeof ee$100, ee000. eeShe eemade eea ee(an):
a. economic ee profit.
b. economic ee Ioss.
C. ee implicit ee profit.
d. accounting ee loss, ee but ee not ee an ee economic ee loss.
e. zero eeeconomic eeprofit.
All eeof ee the ee above. ee - ee correct ee answer-Which eeof ee the ee following ee is ee an ee example ee of ee a ee fixed ee input?
a. The ee acreage ee of ee a ee farmer's ee land.
b. Machinery.
c. The ee size ee of ee a ee firm's ee plant.
d. All e e of e e the e e above.
can eebe eechanged ee as eeoutput eechanges. ee - eecorrect ee answer-Variable ee inputs ee are ee defined eeas eeany
ee resource ee that:
a. varies ee with ee the ee size ee of ee the ee firm's ee plant.
b. cannot ee be ee changed ee as eeoutput ee changes.
WITH CORRECT ANSWERS 2025
ee ee ee ee
$52,000. ee - ee correct ee answer-
A eeyoung eechef eein eeconsidering eeopening eehis eeown eesushi eebar. eeTo eedo eeso, eewould eehave eeto eequit eehis
eecurrent eejob, eew eehich eepays ee$20,000 eea eeyear, eeand eetake ee over eea eestore ee building eethat ee he ee owns eeand
eecurrently ee rents ee to ee his eebrothe e e r eefor ee$6,000 eea eeyear. eeHis eeexpenses eeat eethe eesushi eebar eewould
eebe ee$50,000 eefor eefood eeand ee$2,000 eefor eegas eeand eeel eeectricity. eeWhat eeare eehis eeexplicit eecosts?
a. $26,000.
b. $66,000.
c. $70,000.
d. $52,000.
e. $72,000.
The ee firm eeowner's ee time. ee- eecorrect ee answer-Which eeof ee the ee following ee is ee not ee an eeexplicit ee cost?
a. Salaries.
b. Sales ee taxes.
C. ee Utilities, ee such ee as ee gas ee and ee electricity.
d. Insurance.
e. The ee firm ee owner's ee time.
implicit eecost. ee - ee correct ee answer-
The eeamount eeof eemoney eethat eecould eehave eebeen eemade eeby eerenting eea eepiece eeof eeland eeto eebe eeused
eefor eebuilding eean eeoffice eebuilding eeinstead eeof eeusing eethe eeland eefor eeemployee eeparking eeis eea(n):
a. implicit ee cost.
b. accounting eecost.
c. explicit eecost.
d. pure eeeconomic ee cont.
, less eethan eeaccounting eeprofit eeif eeimplicit eecosts ee are eegreater eethan eezero. ee- eecorrect ee answer-Economic
ee profit eeis:
a. always ee less eethan ee zero.
b. never eeless eethan eeaccounting eeprofit.
C. ee less ee than ee accounting ee profit ee if ee implicit eecosts eeare ee zero.
d. ee less eethan eeaccounting eeprofit ee if ee implicit ee costs ee are ee greater ee than eezero.
zero eeeconomic eeprofit. ee- eecorrect eeanswer-An eeeconomist eeleft eeher
ee$100,000-a- eeyear eeteaching eeposition eeto eework eefull-
time eein eeher eeown eeconsulting eebusiness. eeIn eethe eefirst eeyear, eeshe eehad eetotal eerevenue eeof ee$200,000
eeand eebusiness eeexpenses eeof ee$100, ee000. eeShe eemade eea ee(an):
a. economic ee profit.
b. economic ee Ioss.
C. ee implicit ee profit.
d. accounting ee loss, ee but ee not ee an ee economic ee loss.
e. zero eeeconomic eeprofit.
All eeof ee the ee above. ee - ee correct ee answer-Which eeof ee the ee following ee is ee an ee example ee of ee a ee fixed ee input?
a. The ee acreage ee of ee a ee farmer's ee land.
b. Machinery.
c. The ee size ee of ee a ee firm's ee plant.
d. All e e of e e the e e above.
can eebe eechanged ee as eeoutput eechanges. ee - eecorrect ee answer-Variable ee inputs ee are ee defined eeas eeany
ee resource ee that:
a. varies ee with ee the ee size ee of ee the ee firm's ee plant.
b. cannot ee be ee changed ee as eeoutput ee changes.
