Ja Chapter 9 Review Game

When total cost exceeds total revenues, a business has registered

• A loss

• A profit

• A benefit

• A risk

When total revenues exceed total costs, a business has registered

• A loss

• A profit

• A benefit

• A risk

An economist would probably argue that technological changes are usually the direct result of

• Division of labor

• Additional equipments

• Low wages and productivity

• New knowledge and processes

An economist would most likely define fixed costs as

• Extra charges incurred when workers demand higher wages

• Extra charges incurred when a business ships additional goods

• Expenses that increase or decrease with the rate of productionê

• Expenses that remain unchanged regardless of the rate of production

Which of the following statements is TRUE about the introduction of the assembly line in the American automobile industry?

• It utilized the concept of division of labor to improve efficiency

• It helped companies train employees to do a wide variety of jobs

• It required workers to have comprehensive knowledge of all production tasks

• It improved product quality by slowing down the time needed to produce cars

To an economist, when an automobile factory operates efficiently it means that

• Profit per vehicle is highv

• All cars produced are sold

• The ratio of cars produced per input is high

• The output of cars produced per year increases

Division of labor is best described as a process in which

• Different companies specialize in producing similar productsjobs

• Each worker performs a specific task in the production process

• Workers share shifts with other workers on the job to increase production

• Unions protect jobs and benefits by organizing employees in different industries

A market economy generally encourages producers to realize greater profits by

• Restricting consumer choices

• Obtaining government loans and subsidies

• Increasing production output for all products and services

• Reducing production costs and making higher quality productsjobs

Which of the results above most likely reflect an increase in productivity?

• I and II

• I and III

• II and III

• I, II and II

Economists generally describe productivity as

• The amount of profit gained from output

• The increase in goods produced from input

• The increase in profit per unit of input per hour

• The amount of output produced per worker per hour

In economic terms, losses are the financial incentive that induce entrepreneurs to

• Reduce efficiency

• Increase current productionÿà¥

• Continue running their businesses as usualp\

• Use productive resources in different ways

In economics, the formula for determining productivity is

• Output divided by input

• Profit divided by losses

• Price divided by production cost

• Output divided by quantity demanded

An economist would probably argue that an increase in productivity affects a nation's standard of living because

• Workers who are more productive are likely to earn higher wages.

• Companies with productive workers are likely to earn lower profits.

• The productive output of a country determines its inflation rate.

• The productive output of a country determines income tax rates.

Which of the following business expenses is most likely to vary each month?

• A loan payment

• An electric bill

• A building’s rental cost

• An employee’s health insurance cost

An investment in a college education is an investment in

• Capital goods

• Human capital

• Natural resources

• Technological change

Which of these describes an increase in productivity?

• Higher total output of goods and services

• Higher profit margins on goods and services

• More goods and services are produced at increased prices

• More goods and services are produced with the same resources

An economist would most likely define variable costs as expenses that

• Result from equipment that wears out over time

• Result from executive salaries and property taxes

• Increase or decrease with the rate of production

• Remain unchanged regardless of productive output

In the scenario above, Company A’s total variable costs would be

• $4,500

• $9,200

• $10,400

• $14,900

Which of the following statements is true about investments in physical and human capital?

• They reduce employment opportunities and standards of living.

• They require productivity losses in exchange for reduced upfront costs.

• They require short-term costs in exchange for improved long-term results.­

• They create little or no opportunity costs or economic risks for companies.

Which of the following are most likely to improve a company's overall productivity?

• Higher tax rates on its workers' incomes

• Improvements in its trade relations

• Advances in its technology

• None of the above

Dividing total output by total input is a way to measure

• Productivity

• Relative price

• Absolute advantage

• Comparative advantage

A country's gross domestic product (GDP) is a measurement of the

• Total value of stocks traded on the nation's major stock exchanges

• Amount of labor required to produce the nation's goods and services

• Average costs to employers for producing the nation's most commonly used goods

• Total value of final goods and services produced per year within the nation's borders

An automobile manufacturer enjoyed a 5% increase in profit from one year to the next, even though the cost of the company's productive resources remained constant. Which of these is the most likely explanation?

• The company paid lower wages to the workers\

• The workers increased their productivity

• The demand for automobiles decreasedm

• None of the above

An economist would probably argue that the situation described above would most likely result in

• Lower rates of inflation in Country A

• Lower levels of consumer spending in Country A

• Higher rates of unemployment in Country A

• Higher standards of living for people in Country AL

Consumers are affected by government regulations that increase entrepreneurs' costs of production because

• Production costs are rarely if ever passed along to consumers

• Entrepreneurs generally increase production when their own costs go up

• Production cost increases are likely to increase consumer demand for goods

• Consumers may ultimately have fewer choices as a result of higher production costs

If a business wants to maximize profits, it attempts to produce a quantity of goods which creates

• The lowest total costs

• The highest possible revenues

• The most equality between costs and revenues

• The greatest positive difference between costs and revenues

A company employs 100 workers and each works 35 hours per week. They produce a total of 7,000 items per week. According to this information, labor productivity at the company is

• 1 item per worker per hour

• 2 items per worker per hour

• 3.5 items per worker per hour

• 7 items per worker per hour

The MAIN purpose of using division of labor is to

• Distribute work evenly

• Lower transaction costs

• Improve productivity

• Increase consumption

Which of these actions is an investment in human capital?

• Paying higher wages

• Saving more money

• Learning new skills

• Buying equipment

Which expense is most likely a fixed cost?

• Wages for workers

• Monthly shipping charges

• Rent for a company’s warehouse

• Raw materials used in production

Which of the following best completes the statement above?

• Fixed costs

• Fixed benefit

• Marginal cost

• Marginal benefit

An economist would most likely define economic growth as

• An increase in profits from goods and services in the short run

• An improved standard of living for a nation's government officials

• A higher level of employment in manufacturing and agriculture

• A sustained increase in the nation's production of goods and services

Which of the following statements about investing in human capital is most likely true?

• It can increase productivity, because it increases a worker's abilities on the job.

• It can raise future standards of living, because workers will be more productive.

• It can reduce the cost of doing business, because workers will be more productive.

• All of the above.

Which of the following would occur as a business increases the quantity it produces?

• Total cost falls as more units are produced.

• Average fixed cost falls as more units are produced.

• Average variable cost falls after reaching the point of diminishing returns.

• Total fixed cost falls, then increases after reaching the point of diminishing returns.

In economic terms, worker specialization is likely to lead to

• Fewer job options

• Greater productivity

• Increased production costs

• Exclusion from the job market

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