Micro-Economics Ch 9

Micro-Economics Ch 9 - Name: _ Date: _ 1. Jacquelyn is a...

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Name: __________________________ Date: _____________ 1. Jacquelyn is a student at a major state university. Which of the following is not an example of an explicit cost of her attending college? A) tuition B) textbooks C) the salary that she could have earned working full-time D) computer lab fees 2. Accounting profit differs from economic profit because: A) of differences in the manner in which revenue is calculated. B) economic costs include depreciation, while accounting costs do not. C) accounting costs are generally higher than economic costs because accounting costs include explicit and implicit costs, while economic costs include only explicit costs. D) economic costs are generally higher than accounting costs because economic costs include all opportunity costs, while accounting costs include explicit costs only. 3. You decide to quit your $60,000 per year job as an information technology specialist and illustrate children's books. At the end of the first year of illustrating, you have earned $20,000. You also spent $5,000 for paint and paper. Your economic profit in the first year as an illustrator is: A) $15,000. B) $20,000. C) –$40,000. D) –$45,000. 4. For most firms, economic profit is: A) less than accounting profit. B) equal to accounting profit. C) greater than accounting profit. D) negative. 5. Profit computed using explicit costs as the only measure of costs is: A) explicit profit. B) accounting profit. C) implicit profit. D) economic profit Page 1
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6. The costs economists use in the concept of economic profit are: A) accounting costs. B) strictly dollar costs, not opportunity costs.
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This note was uploaded on 12/02/2011 for the course ECONOMICS 202 taught by Professor Black during the Fall '08 term at Boise State.

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Micro-Economics Ch 9 - Name: _ Date: _ 1. Jacquelyn is a...

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