1. An explicit cost is:
A. omitted when accounting profits are calculated.
B. a money payment made for resources not owned by the firm itself.
C. an implicit cost to the resource owner who receives that payment.
D. always in excess of a
Econ 224 Practice Third Exam
1. If a seafood restaurant can raise the price of its fried shrimp without losing all of its customers, then the
A. Has market power.
B. Is experiencing economies of scale.
C. Is using predato
Production Possibility Curve
Outlier- outside the curve (not enough resources, needs more resources) build more
factories, improve infrastructure
If the point is along the curve (you have adequate resources)
Economic growth t
1. One major barrier to entry under pure monopoly arises from:
A. the availability of close substitutes for a product.
B. ownership of essential resources.
C. the price taking ability of the firm.
D. diseconomies of scale.
2. Which case
Econ 224 Practice Second Exam
Student: _ 1. The law of demand states that: A. The greater the number of buyers in a marker, the lower the price. B. Price and quantity demanded are directly related. C. The lower the cost the lower the price. D. Price and q
Which is not considered to be an economic resource?
Land (or other natural resources)
A point on the frontier of the production possibilities curve is:
attainable and efficient.
attainable, but inef
1. The movement from (a) to (b) is:
A. a movement from unemployment to full employment.
B. an improvement in capital goods technology but not in consumer
C. an improvement in consumer goods technology but not in capital
Econ 224 Practice First Exam
1. The central problem of economics is the:
A. Distribution of goods and services to those in need.
B. Scarcity of resources relative to human wants.
C. Inefficiency of government operations.
D. Unemployment of cert