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Chapter_7 - YourResultsfor"SelfStudyQuiz SiteTitle...

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Your Results for: "Self-Study Quiz" Print this page Site Title: Principles of Economics, Eighth Edition Book Title: Principles of Economics, 8/e Book Author: Case/Fair Location on  Site: Chapter 7 > Self-Study Quiz Date/Time  Submitted: February 7, 2012 at 9:11 AM  (UTC/GMT) Summary of Results 20% Correct  of 40 Scored items: 8 Correct:  20% 32 Incorrect:  80% 5 questions not scored. 40 scored questions. More information about scoring 1. The process by which inputs are  combined, transformed, and turned  into outputs is called: Your Answer:   Correct. Central to our analysis is production, the process by which inputs are combined,  transformed, and turned into outputs. Firms vary in size and internal organization, but  they all take inputs and transform them into things for which there is some demand. 2. What is a  firm Your Answer: Since production is not limited to f institution that participates in the e business, or an investment bank. Correct Answer: An organization that comes into b decides to produce a good or serv demand.   Incorrect. A firm exists when a person or a group of people decides to produce a good or  service to meet a perceived demand.
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3. Which of the following are  characteristics of firms in perfectly  competitive markets?  Your Answer: Firms don’t have control over price Correct Answer: All of the above.   Incorrect. This answer is correct, however, other choices are also correct. 4. Refer to the figure below. In the  context of perfect competition, what  is this graph trying to explain? Your Answer: How market demand and the firm’ same in a perfectly competitive m Correct Answer: The ability of the perfectly compet output as long as it accepts the m   Incorrect. This is the firm’s demand curve, not the market demand curve. 5. In which of the following industries is  perfect competition more likely to  prevail? 
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Your Answer: Energy. Correct Answer: Agriculture.   Incorrect. There are relatively few firms in this industry, and entry is difficult. 6. Which of the following decisions  must be made by a profit- maximizing firm?  Your Answer: How to maximize opportunity cost Correct Answer: How much of each input to deman   Incorrect. A firm tries to minimize–not maximize– all costs, including opportunity costs.  Opportunity cost is the minimum payment required to keep factors of production where  they are now. 7. Which of the following formulas is  correct?  Your Answer: Profit minus total cost equals total Correct Answer: Profit equals total revenue minus t   Incorrect. Profit is the difference between total revenue and total cost.
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