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#Economics Exam Answers

Microeconomics Exam Answers

Macroeconomics Exam Answers

Below is a compiled list of economics exam answers and quiz answers. If you are going to use this economics exam answers resource, it would be appreciated if you would Share this page on Facebook, Tweet this page or Google + this page.  These help increase the awareness of the resource and allow the page to continue to stay up.

1. Which of the following is most likely to be an implicit cost for Company X?

A. forgone rent from the building owned and used by Company X

C. payments for raw materials purchased from Company Y

D. transportation costs paid to a nearby trucking firm

2. To the economist, total cost includes:

A. explicit and implicit costs, including a normal profit.

B. neither implicit nor explicit costs.

C. implicit, but not explicit, costs.

D. explicit, but not implicit, costs.

3. Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were:

D. BMW constructs a new assembly plant in South Carolina.

5. The short run is characterized by:

A. plenty of time for firms to either enter or leave the industry.

B. increasing, but not diminishing returns.

C. fixed plant capacity.

D. zero fixed costs.

6. The law of diminishing returns indicates that:

A. as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.

B. because of economies and diseconomies of scale a competitive firm s long-run average total cost curve will be U-shaped.

C. the demand for goods produced by purely competitive industries is downsloping.

D. beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.

Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non-labor resources are fixed.

7. Refer to the above data. Diminishing marginal returns become evident with the addition of the: