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ECON-B251 Final Exam qustions and answers What is a firm's goal?maximize economic profit Accounting Profit- daily, weekly, monthly recordings of all bills/costs paid by the firm doesn't fully measure opportunity cost Economic profitthe total revenue - total costs: explicit and the opportunity costs paid by the firm (implicit) this is the profit that is referred to when it says a firm's profit firms make decisions off economic profit Opportunity costexplicit...

Econ B251 Final Exam questions and answers Explicit costsOut-of-pocket production expenses recorded using the accounting method Implicit costsMeasure the alternative uses of 3 types of resources, such as physical capital, interest payment, and time Normal profitThe income associated with the entrepreneur Command systemWhen workers follow directions from their boss above them and provide feedback to their boss Incentive systemWhen firms have a well-defined and well i...

ECON B251 Final Exam qestions and answers Scarcity Principleall actions have tradeoffs Opportunity Costcall of the best foregone alternative action Marginal cost-benefit principletake an action if and only if the extra benefits are at least as great as the extra costs Absolute advantagethe ability to complete a task using less resources (time, money, etc.) Comparative advantagelower opportunity cost Efficientif there is no alternative that improves outcomes for s...

ECON B251 Exam 1 questions and answers Because we face scarcity, every choice involves: a) money b) time and money c) marginal benefity d) trad-offsD. trade-offs You decide to take a vacation and the trip costs you 1,254. While you are on vacation, you do not report to work where you could have earned 123. The opportunity cost of the vacation is $_______.1,377 Strategic decisions include- one's own benefits - one's own costs - other's decisions The nig...

Econ B-251 Canvas 1-4 Questions and answers All economic questions are abouthow to cope with scarcity Which of the following is a microeconomic question?-Will a shortage of electricians lead to an increase in their wages? - Will taxing pizza increase the amount of pizzas sold? Because we face scarcity, every choice involvesTrade-offs You decide to take a vacation and the trip cost you $2000. While you're on vacation you do not report to work where you could've earned...

ECON B-251 EXAM 1questions and answers economicsthe study of satisfying unlimited wants by utilizing limited resources scarcityunlimited wants and limited resources the economic problemdeals with the problem of scarcity Microeconomicsstudies decisions by individual firms and governments Macroeconomicsstudies decisions made or actions taken by the entire economy ex. inflation, unemployment, GDP rationality assumptionassumes that people do not intentionally make dec...

Econ B 251 qestions and answers Which of the following are characteristics of a monopoly?the firms demand cure is downward sloping, there are high barriers to entry or exit, the firm determines the price to charge it's buyers. Which of the following are barriers to entry for a monopoly?patents, ownership of a vital resource, public franchises Which of the following is true for BOTH a monopoly and a perfectly competitive firm?The profit maximizing output level occurs where ...

At the profit maximizing level of output, firms shutdown whenprice< average variable cost In the long run perfectly competitive firms earn zero economic profit and positive accounting profitZero, positive Perfectly competitive markets are --- because total surplus is maximized and forms produce at the lowest possible --- cost.Efficient, total surplus, average total Sue quit her $40,000 per year job and opened a coffee shop that she calls Top Brew. In the first year, Top...

Econ B 251 Exam #2 questions and answers What are goods in which when demand increases, income increases?Normal goods What are goods in which when demand decreases, income increases?Inferior goods What is maximizing happiness or satisfaction from consuming a bundle of goods and services subject to income and prices?Consumer optimum What is the price of good in terms of another good?Relative price What is the total benefit (happiness) received from consuming some goo...

MBA 5100- Exam 1 questions and answers Manufacturing businessbuys raw materials, uses labor and machinery to transform them into finished products, and sells the finished products to individuals or other businesses Merchandising businessbuys finished products made by other businesses and resells them to individuals or other businesses