BE 301 (BUSINESS ECONOMICS) KU
Assessment 1 Solved 100% Correct
Amount of money he or she is willing to pay - ANSWER-An individuals value for a good
or service is the
It creates wealth by letting a person follow his or her own self-interest - ANSWER-The
biggest advantage of capitalism is that
With private property rights
With strong contract enforcement
With black markets
d.All of the above (answer) - ANSWER-Wealth-creating transactions are more likely to
occur
Provides incentives to conduct business in an illegal black market - ANSWER-
Government Regulation
minimum wages - ANSWER-An example of a price floor is
Impede the movement of assets to higher-valued uses.
Reduce incentives to work
Decreases the number of wealth creating transactions
d.All of the above (answer) - ANSWER-Taxes:
$6,000 worth of buyer surplus and $4,000 worth of seller surplus - ANSWER-A
consumer values a car at $30,000 and it costs a producer $20,000 to make the same
car. If the transaction is completed at $24,000, the transaction will generate
$523,800 - ANSWER-A consumer values a car at $525,000 and a producer values the
same care at $485,000. If sales tax is 8% and is levied on the seller, then the sellers
bottom line price is
Never - ANSWER-Efficiency implies opportunity,
$300,000 - ANSWER-A business owner makes 1,000 items a day. Each day he or she
contributes eight hours to produce those items. If hired, elsewhere he or she could have
earned $250 an hour. The item sells for $15 each. Production does not stop during
weekends. If the explicit costs total $150,000 for 30 days, the firm's accounting profit for
the month equals:
$240,000 - ANSWER-A business owner makes 1,000 items a day. Each day he or she
contributes eight hours to produce those items. If hired, elsewhere he or she could have
earned $250 an hour. The item sells for $15 each. Production does not stop during
Assessment 1 Solved 100% Correct
Amount of money he or she is willing to pay - ANSWER-An individuals value for a good
or service is the
It creates wealth by letting a person follow his or her own self-interest - ANSWER-The
biggest advantage of capitalism is that
With private property rights
With strong contract enforcement
With black markets
d.All of the above (answer) - ANSWER-Wealth-creating transactions are more likely to
occur
Provides incentives to conduct business in an illegal black market - ANSWER-
Government Regulation
minimum wages - ANSWER-An example of a price floor is
Impede the movement of assets to higher-valued uses.
Reduce incentives to work
Decreases the number of wealth creating transactions
d.All of the above (answer) - ANSWER-Taxes:
$6,000 worth of buyer surplus and $4,000 worth of seller surplus - ANSWER-A
consumer values a car at $30,000 and it costs a producer $20,000 to make the same
car. If the transaction is completed at $24,000, the transaction will generate
$523,800 - ANSWER-A consumer values a car at $525,000 and a producer values the
same care at $485,000. If sales tax is 8% and is levied on the seller, then the sellers
bottom line price is
Never - ANSWER-Efficiency implies opportunity,
$300,000 - ANSWER-A business owner makes 1,000 items a day. Each day he or she
contributes eight hours to produce those items. If hired, elsewhere he or she could have
earned $250 an hour. The item sells for $15 each. Production does not stop during
weekends. If the explicit costs total $150,000 for 30 days, the firm's accounting profit for
the month equals:
$240,000 - ANSWER-A business owner makes 1,000 items a day. Each day he or she
contributes eight hours to produce those items. If hired, elsewhere he or she could have
earned $250 an hour. The item sells for $15 each. Production does not stop during
