BE 301 KU Exam 1 Multiple Choice Questions and Answers Fully Solved
Amount of money he or she is willing to pay - Answers An individuals value for a good or service is the
It creates wealth by letting a person follow his or her own self-interest - Answers The biggest advantage
of capitalism is that
With private property rights
With strong contract enforcement
With black markets
d.All of the above (answer) - Answers Wealth-creating transactions are more likely to occur
Provides incentives to conduct business in an illegal black market - Answers Government Regulation
minimum wages - Answers 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) - Answers Taxes:
$6,000 worth of buyer surplus and $4,000 worth of seller surplus - Answers 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 - Answers 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 - Answers Efficiency implies opportunity,
$300,000 - Answers 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 - Answers 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 economic profit for the month equals:
resource scarcity - Answers Opportunity costs arise due to
Amount of money he or she is willing to pay - Answers An individuals value for a good or service is the
It creates wealth by letting a person follow his or her own self-interest - Answers The biggest advantage
of capitalism is that
With private property rights
With strong contract enforcement
With black markets
d.All of the above (answer) - Answers Wealth-creating transactions are more likely to occur
Provides incentives to conduct business in an illegal black market - Answers Government Regulation
minimum wages - Answers 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) - Answers Taxes:
$6,000 worth of buyer surplus and $4,000 worth of seller surplus - Answers 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 - Answers 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 - Answers Efficiency implies opportunity,
$300,000 - Answers 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 - Answers 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 economic profit for the month equals:
resource scarcity - Answers Opportunity costs arise due to
