Name: ________________________ Class: ___________________ Particular date: __________
Recognize the choice that best wraps up the statement or answers the question. ____
1 ) The fundamental objective of a firm is
a. different for each firm.
b. to make a top quality product.
c. to maximize earnings.
d. to gain market share.
at the. decrease the employment of workers to be able to cut the costs. 2 . Lauren works a chili restaurant in San Francisco. Her total income last year was $110, 000. The rent on her cafe was $48, 000, her labor costs were $42, 000, and her materials, food and also other variable costs were $20, 000. Lauren could have proved helpful as a biologist and gained $50, 1000 per year. A great economist computes her implicit costs because
a. $150, 000.
w. $63, 500.
c. $50, 000.
d. $110, 500.
e. $0 because Lauren did not work as a biologist.
3. Which will of the subsequent is(are) an explicit price in Jim's business venture? a. the wage Jim could have earned for another task
b. the eye Jim would not earn as they invested his savings in the business c. the pay Jim pays his personnel
d. Jim's normal profit
e. Solution A, answer B, and answer D are right.
4. A cost incurred in the production of a good or service and then for which the company does not need to help to make a direct budgetary payment, is known as ____ cost.
a. a minimized
n. a maximized
c. an explicit
m. an implicit
e. a hidden
5. An implicit expense is
a. if a money payment is made because a factor of production is employed. b. every time a factor of production is utilized but a money payment is certainly not made. c. when a cash payment is done.
d. not really relevant to a great entrepreneur's making decisions.
e. regarded as part of the customer's economic earnings.
6. Presume Billy owns a hair salon in Based in dallas. He features one significant hair dryer that he paid $1, 500. If they can sell the appliance one year later on for $800, his total economic devaluation equals a. $1, 000.
b. one hundred dollar.
d. 500 usd.
e. None of the over answers are correct.
7. The spring quit her job since an accountant for Ernst and Young, in which she was paid $45, 000 per year. She started her individual landscaping business. She rental prices machines and tools intended for $50, 1000 and pays $10, 500 as salary to her support. These are her only costs. The spring earned total revenue of $100, 1000. a. Her accountant computes her profit as $40, 000.
n. She has a fiscal loss.
c. Her explicit cost is $105, 000.
deb. Both answers A and B will be correct.
at the. Both answers A and C happen to be correct.
8. Bill is an economics professor whom earns $40, 000 instructing but chooses to keep and fulfill his imagine catering barbecues. During his first yr of grilling he gained total earnings of $60, 000. He spent $30, 000 on food and supplies. He also paid out his better half $10, 1000 to help provide food. The regular profit to get an entrepreneur operating a barbecue organization is $3, 000. He also leased an commercial grill/fry vehicle for $12, 000. A los angeles accountant would determine that Bill's profit was
a. $30, 000.
w. $20, 1000.
c. $8, 000.
deb. вЂ“$2, 000.
e. $40, 000
9. Bill is an economics professor who earns $37, 000 instructing but decides to keep and accomplish his dream of catering barbecues. During his year of barbecuing he earned total revenue of $60, 000. He put in $30, 500 on foodstuff and materials. He also paid his wife $10,50, 000 to help serve food. The normal profit for a business person running a barbecue business is usually $3, 1000. Bill as well rented an industrial grill/fry truck to get $12, 1000. Bill recently had an economic
a. profit of $20, 500.
b. loss in вЂ“$32, 1000.
c. lack of вЂ“$42, 500.
d. profit of $28, 000.
electronic. profit of zero.
10. Which from the following can be described as long-run rather than a short-run decision for any firm? a. hiring fewer people
w. increasing herb capacity by simply fifty percent
c. hiring more people
m. Answer A and solution B happen to be correct.
e. Answer M and solution C happen to be correct.
eleven. The enhancements made on the total product...