Econ 211 practice probs 5 answers

Econ 211 practice probs 5 answers - Econ 211 Practice...

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Econ 211 Practice problems #5 (chs. 9 – 11) Patrick McLaughlin Practice Problems: These problems are to assist you in learning the material covered so far. They will not be collected. The answers are at the end, but I advise trying to do the problems without looking at the answers first. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 2) The return that an entrepreneur can expect to earn, on average, is called A) profit. B) economic profit. C) normal profit. D) accounting profit. 3) A chief reason firms give employees bonuses based on the firm's profit is to cope with A) unions. B) the law of diminishing returns. C) the tax laws. D) the principal-agent problem. 4) Kris wants to purchase a house. She buys newspapers to read the classified advertisements and spends her evenings with realtors looking at houses. Kris has incurred the ________ costs of making a purchase. A) market B) scale C) buying D) transactions 5) Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of $600,000. Sheila runs the business herself. Her alternative employment options are to be a college swimming coach for $50,000 per year or a construction worker for $40,000 per year. Sheila spends $230,000 purchasing goods for resale to her customers. She also has four employees, who each earn $25,000 per year. Sheila owns the building that her Sports Shop is housed in-she remodeled a house that she owns and that she could
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This homework help was uploaded on 04/09/2008 for the course ECON 211 taught by Professor Johnson during the Spring '07 term at Clemson.

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Econ 211 practice probs 5 answers - Econ 211 Practice...

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