WGU C211 GLOBAL ECONOMICS LATEST VERSION
WITH ANSWERS
Economic profit is distinct from accounting
profit because: - ANSWER-Economic profit incorporates both explicit
and implicit costs.
Total costs include: - ANSWER-Variable costs plus fixed costs.
Marginal costs consider: - ANSWER-The increase in total cost arising from an
extra unit of production.
What response best describes the relationship
between marginal costs and total costs? - ANSWER-Whenever marginal cost is less
than
average total cost, average total cost is falling.
Which statement is true about productivity? - ANSWER-The value of marginal
product of labor
equals wage in a competitive firm.
,A production function expresses the
relationship between: - ANSWER-Quantity of resource inputs and
product/service outputs.
Opportunity costs include: - ANSWER-The income the entrepreneur could have
earned working for an employer.
Economists and decision makers study and
then make decisions or judgments based on
(select best answer): - ANSWER-Marginal analysis.
The primary reason that the marginal cost
curve declines and then increases is: - ANSWER-Firms experience increasing
marginal
product, then diminishing marginal product.
Which of the following statements is
accurate? - ANSWER-Marginal costs eventually rise with the
quantity of output.
Consider the following example: A perfectly
competitive firm finds that at current
production levels marginal cost is greater
,than marginal revenue. What action should
this firm take in order to pursue the
maximization of profit? - ANSWER-Decrease the target output.
A competitive firm is characterized by: - ANSWER-Trading of identical products.
Competitive firms experience marginal
revenue that is: - ANSWER-Equal to price.
In the short-run, a competitive firm would
continue to produce under the following
circumstance: - ANSWER-Total revenue exceeds total variable
costs.
What fundamental shape does a demand
curve take in a competitive market? - ANSWER-Horizontal.
For a perfectly competitive firm which
condition is true? - ANSWER-The demand curve is the same as the
marginal revenue curve.
Which condition is true for perfectly
competitive firms in the long-run? - ANSWER-They will exit the market if total
, revenue is less than total costs.
Which statement is true concerning marginal
costs? - ANSWER-Marginal costs typically decline and
then increase with the quantity of output.
What rule is used by perfectly competitive
firms to determine shut-down in the shortrun? - ANSWER-Price is less than
average variable
costs.
Suppose that the United States imposes a
tariff on avocados imported from Mexico.
What impact will this have on the price paid
for avocados by United States citizens? - ANSWER-The price will increase.
Which of the following is a consequence of a
country imposing a tariff on imported goods? - ANSWER-The demand for foreign
produced goods
decreases.
Suppose that the United States imposes a
tariff on salt. What impact might this tariff
have on the price for domestic consumers? - ANSWER-Consumers will pay a
higher price.
WITH ANSWERS
Economic profit is distinct from accounting
profit because: - ANSWER-Economic profit incorporates both explicit
and implicit costs.
Total costs include: - ANSWER-Variable costs plus fixed costs.
Marginal costs consider: - ANSWER-The increase in total cost arising from an
extra unit of production.
What response best describes the relationship
between marginal costs and total costs? - ANSWER-Whenever marginal cost is less
than
average total cost, average total cost is falling.
Which statement is true about productivity? - ANSWER-The value of marginal
product of labor
equals wage in a competitive firm.
,A production function expresses the
relationship between: - ANSWER-Quantity of resource inputs and
product/service outputs.
Opportunity costs include: - ANSWER-The income the entrepreneur could have
earned working for an employer.
Economists and decision makers study and
then make decisions or judgments based on
(select best answer): - ANSWER-Marginal analysis.
The primary reason that the marginal cost
curve declines and then increases is: - ANSWER-Firms experience increasing
marginal
product, then diminishing marginal product.
Which of the following statements is
accurate? - ANSWER-Marginal costs eventually rise with the
quantity of output.
Consider the following example: A perfectly
competitive firm finds that at current
production levels marginal cost is greater
,than marginal revenue. What action should
this firm take in order to pursue the
maximization of profit? - ANSWER-Decrease the target output.
A competitive firm is characterized by: - ANSWER-Trading of identical products.
Competitive firms experience marginal
revenue that is: - ANSWER-Equal to price.
In the short-run, a competitive firm would
continue to produce under the following
circumstance: - ANSWER-Total revenue exceeds total variable
costs.
What fundamental shape does a demand
curve take in a competitive market? - ANSWER-Horizontal.
For a perfectly competitive firm which
condition is true? - ANSWER-The demand curve is the same as the
marginal revenue curve.
Which condition is true for perfectly
competitive firms in the long-run? - ANSWER-They will exit the market if total
, revenue is less than total costs.
Which statement is true concerning marginal
costs? - ANSWER-Marginal costs typically decline and
then increase with the quantity of output.
What rule is used by perfectly competitive
firms to determine shut-down in the shortrun? - ANSWER-Price is less than
average variable
costs.
Suppose that the United States imposes a
tariff on avocados imported from Mexico.
What impact will this have on the price paid
for avocados by United States citizens? - ANSWER-The price will increase.
Which of the following is a consequence of a
country imposing a tariff on imported goods? - ANSWER-The demand for foreign
produced goods
decreases.
Suppose that the United States imposes a
tariff on salt. What impact might this tariff
have on the price for domestic consumers? - ANSWER-Consumers will pay a
higher price.
