quiz 4 chapter solutions

quiz 4 chapter solutions - Self-Test Questions Chapter 4...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Self-Test Questions Chapter 4 MULTIPLE CHOICE 1. According to the law of supply, a. firms' production levels are not correlated with the price of a good. b. the supply curve slopes downward. c. firms are willing to produce a greater quantity of a good when the price of the good is higher. d. None of the above are correct. ANS: C 2. Which of the following would be categorized as an implicit cost? (i) wages of workers (ii) raw material costs (iii) forgone investment opportunities a. (i) and (iii) b. (iii) only c. (ii) and (iii) d. All of the above are correct. ANS: B 3. An example of an explicit cost of production would be a. the cost of forgone labour earnings for an entrepreneur. b. the lost opportunity to invest in other capital markets when the money is invested in one's business. c. the cost of flour for a baker. d. None of the above are correct. ANS: C 4. Economic profit is equal to (i) total revenue - (explicit costs + implicit costs). (ii)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2011 for the course ECON 2200 taught by Professor N/a during the Fall '10 term at Algonquin College.

Page1 / 2

quiz 4 chapter solutions - Self-Test Questions Chapter 4...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online