Ja Chapter 9 Review Game

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Ja Chapter 9 Review Game - Quiz

Here it is after a brief hiatus. The chapter 9 quiz. The questions are the same as the questions on the test!


Questions and Answers
  • 1. 

    1. Which of the following statements is the BEST example of an increase in productivity?

    • A.

      A factory produces more units than in the previous year.

    • B.

      A factory uses fewer resources than in the previous year.

    • C.

      A factory produces fewer units using more resources than in the previous year.

    • D.

      A factory uses fewer resources to produce more units than in the previous year.

    Correct Answer
    D. A factory uses fewer resources to produce more units than in the previous year.
    Explanation
    The correct answer is "A factory uses fewer resources to produce more units than in the previous year." This statement exemplifies an increase in productivity because it shows that the factory is able to produce a greater quantity of units while using fewer resources. This indicates that the factory has become more efficient in its production process, resulting in higher productivity.

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  • 2. 

    When total cost exceeds total revenues, a business has registered

    • A.

      A loss

    • B.

      A profit

    • C.

      A benefit

    • D.

      A risk

    Correct Answer
    A. A loss
    Explanation
    When the total cost of a business exceeds its total revenues, it means that the business is spending more money than it is earning. This situation leads to a financial loss for the business. A loss occurs when the expenses incurred by the business, such as operating costs and overheads, are greater than the income generated from sales or services. This is a common scenario in business when the company's expenses outweigh its revenues, resulting in a negative financial outcome.

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  • 3. 

    When total revenues exceed total costs, a business has registered

    • A.

      A loss

    • B.

      A profit

    • C.

      A benefit

    • D.

      A risk

    Correct Answer
    B. A profit
    Explanation
    When total revenues exceed total costs, it means that the business is making more money than it is spending. This is known as a profit. It indicates that the business is generating positive earnings and is financially successful. Profit is a desirable outcome for businesses as it allows them to reinvest in the company, expand operations, pay dividends to shareholders, or save for future expenses.

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  • 4. 

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

    • A.

      Division of labor

    • B.

      Additional equipments

    • C.

      Low wages and productivity

    • D.

      New knowledge and processes

    Correct Answer
    D. New knowledge and processes
    Explanation
    Technological changes are usually the direct result of new knowledge and processes. This is because advancements in technology are driven by the discovery of new ways of doing things and the development of innovative processes. New knowledge allows for the creation of new technologies, while new processes enable the implementation and utilization of these technologies. Therefore, an economist would argue that technological changes are primarily driven by the acquisition and application of new knowledge and processes.

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  • 5. 

    An economist would most likely define fixed costs as

    • A.

      Extra charges incurred when workers demand higher wages

    • B.

      Extra charges incurred when a business ships additional goods

    • C.

      Expenses that increase or decrease with the rate of productionê

    • D.

      Expenses that remain unchanged regardless of the rate of production

    Correct Answer
    D. Expenses that remain unchanged regardless of the rate of production
    Explanation
    Fixed costs are expenses that remain unchanged regardless of the rate of production. This means that these costs do not vary based on the level of output or the number of units produced. Examples of fixed costs include rent, salaries, insurance, and depreciation. These costs are considered to be fixed because they do not fluctuate with changes in production levels or sales.

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  • 6. 

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

    • A.

      It utilized the concept of division of labor to improve efficiency

    • B.

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

    • C.

      It required workers to have comprehensive knowledge of all production tasks

    • D.

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

    Correct Answer
    A. It utilized the concept of division of labor to improve efficiency
    Explanation
    The introduction of the assembly line in the American automobile industry utilized the concept of division of labor to improve efficiency. This means that tasks were divided into smaller, specialized tasks, allowing workers to focus on specific areas of production. This division of labor increased productivity and efficiency as workers became highly skilled in their specific tasks, resulting in faster and more streamlined production processes.

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  • 7. 

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

    • A.

      Profit per vehicle is highv

    • B.

      All cars produced are sold

    • C.

      The ratio of cars produced per input is high

    • D.

      The output of cars produced per year increases

    Correct Answer
    C. The ratio of cars produced per input is high
    Explanation
    When an automobile factory operates efficiently, it means that the ratio of cars produced per input is high. This indicates that the factory is able to maximize its output (number of cars produced) while minimizing its input (resources, such as labor, materials, and energy) usage. A high ratio implies that the factory is utilizing its resources effectively and efficiently, resulting in a higher level of productivity. This ultimately leads to cost savings, increased profitability, and a competitive advantage in the market.

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  • 8. 

    Division of labor is best described as a process in which

    • A.

      Different companies specialize in producing similar productsjobs

    • B.

      Each worker performs a specific task in the production process

    • C.

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

    • D.

      Unions protect jobs and benefits by organizing employees in different industries

    Correct Answer
    B. Each worker performs a specific task in the production process
    Explanation
    Division of labor is the best description of a process where each worker performs a specific task in the production process. This means that instead of each worker being responsible for the entire production process, they focus on a specific task or set of tasks. By dividing the labor in this way, workers can become more efficient and specialized in their specific area, leading to increased productivity and overall output.

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  • 9. 

    A market economy generally encourages producers to realize greater profits by

    • A.

      Restricting consumer choices

    • B.

      Obtaining government loans and subsidies

    • C.

      Increasing production output for all products and services

    • D.

      Reducing production costs and making higher quality productsjobs

    Correct Answer
    D. Reducing production costs and making higher quality productsjobs
    Explanation
    In a market economy, producers are motivated to increase their profits. One way to achieve this is by reducing production costs, which allows them to lower the prices of their products and attract more customers. Additionally, by making higher quality products, producers can differentiate themselves from competitors and build a loyal customer base. These strategies ultimately lead to greater profits for producers in a market economy.

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  • 10. 

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

    • A.

      I and II

    • B.

      I and III

    • C.

      II and III

    • D.

      I, II and II

    Correct Answer
    A. I and II
    Explanation
    The results that most likely reflect an increase in productivity are I and II. This is because an increase in productivity is indicated by both an increase in output (result I) and a decrease in input (result II). When output increases while input decreases, it suggests that more is being produced with fewer resources, which is a sign of improved productivity.

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  • 11. 

    Economists generally describe productivity as

    • A.

      The amount of profit gained from output

    • B.

      The increase in goods produced from input

    • C.

      The increase in profit per unit of input per hour

    • D.

      The amount of output produced per worker per hour

    Correct Answer
    D. The amount of output produced per worker per hour
    Explanation
    Productivity is generally defined as the amount of output produced per worker per hour. This means that it measures the efficiency and effectiveness of workers in producing goods or services within a given time frame. It focuses on the relationship between the input (workers) and the output (goods or services) and provides a measure of how efficiently resources are being utilized. By measuring productivity, economists can assess the overall efficiency of an economy or a specific industry and identify areas for improvement.

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  • 12. 

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

    • A.

      Reduce efficiency

    • B.

      Increase current productionÿà¥

    • C.

      Continue running their businesses as usualp\

    • D.

      Use productive resources in different ways

    Correct Answer
    D. Use productive resources in different ways
    Explanation
    Losses serve as a financial incentive for entrepreneurs to use productive resources in different ways. When a business incurs losses, it indicates that the current use of resources is not generating enough revenue to cover expenses. This prompts entrepreneurs to explore alternative ways to utilize their resources more efficiently and effectively in order to minimize losses and improve profitability. By experimenting with different strategies and approaches, entrepreneurs can adapt their businesses to changing market conditions and maximize the productivity of their resources.

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  • 13. 

    In economics, the formula for determining productivity is

    • A.

      Output divided by input

    • B.

      Profit divided by losses

    • C.

      Price divided by production cost

    • D.

      Output divided by quantity demanded

    Correct Answer
    A. Output divided by input
    Explanation
    The correct answer is "output divided by input." Productivity is a measure of efficiency and is calculated by dividing the output, which represents the goods or services produced, by the input, which represents the resources or factors of production used to produce those goods or services. This formula allows economists to quantify the relationship between the amount of output produced and the resources utilized in the production process.

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  • 14. 

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

    • A.

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

    • B.

      Companies with productive workers are likely to earn lower profits.

    • C.

      The productive output of a country determines its inflation rate.

    • D.

      The productive output of a country determines income tax rates.

    Correct Answer
    A. Workers who are more productive are likely to earn higher wages.
    Explanation
    An economist would 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. This is because when workers are more productive, they can produce more goods or services in the same amount of time, which increases their value to the company. As a result, companies are willing to pay higher wages to retain and attract productive workers. Higher wages allow individuals to have more disposable income, which can improve their standard of living by providing them with the ability to afford better goods and services.

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  • 15. 

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

    • A.

      A loan payment

    • B.

      An electric bill

    • C.

      A building’s rental cost

    • D.

      An employee’s health insurance cost

    Correct Answer
    B. An electric bill
    Explanation
    An electric bill is most likely to vary each month because it is based on the amount of electricity consumed. Usage can fluctuate depending on factors such as seasonal changes, weather conditions, and the number of appliances or equipment being used. Therefore, the cost of an electric bill is not fixed and can vary from month to month.

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  • 16. 

    An investment in a college education is an investment in

    • A.

      Capital goods

    • B.

      Human capital

    • C.

      Natural resources

    • D.

      Technological change

    Correct Answer
    B. Human capital
    Explanation
    Investing in a college education is considered an investment in human capital. Human capital refers to the knowledge, skills, and abilities that individuals acquire through education, training, and experience. By investing in a college education, individuals enhance their skills and knowledge, making them more productive and valuable in the job market. This investment not only benefits individuals by increasing their earning potential and career opportunities but also contributes to the overall economic growth and development of a society.

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  • 17. 

    Which of these describes an increase in productivity?

    • A.

      Higher total output of goods and services

    • B.

      Higher profit margins on goods and services

    • C.

      More goods and services are produced at increased prices

    • D.

      More goods and services are produced with the same resources

    Correct Answer
    D. More goods and services are produced with the same resources
    Explanation
    An increase in productivity is described by the statement "more goods and services are produced with the same resources." This means that the output or quantity of goods and services has increased without requiring additional resources or inputs. It indicates that the efficiency and effectiveness of the production process have improved, resulting in higher productivity. This can lead to cost savings, higher profits, and overall economic growth.

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  • 18. 

    An economist would most likely define variable costs as expenses that

    • A.

      Result from equipment that wears out over time

    • B.

      Result from executive salaries and property taxes

    • C.

      Increase or decrease with the rate of production

    • D.

      Remain unchanged regardless of productive output

    Correct Answer
    C. Increase or decrease with the rate of production
    Explanation
    Variable costs are expenses that fluctuate in relation to the level of production. These costs are directly influenced by the quantity of goods or services produced. As production increases, variable costs also increase, and vice versa. This is because variable costs include expenses such as raw materials, direct labor, and utilities, which are directly tied to the production volume. Therefore, an economist would define variable costs as expenses that vary depending on the rate of production.

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  • 19. 

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

    • A.

      $4,500

    • B.

      $9,200

    • C.

      $10,400

    • D.

      $14,900

    Correct Answer
    C. $10,400
    Explanation
    Based on the information provided, it can be inferred that the total variable costs for Company A would amount to $10,400.

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  • 20. 

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

    • A.

      They reduce employment opportunities and standards of living.

    • B.

      They require productivity losses in exchange for reduced upfront costs.

    • C.

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

    • D.

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

    Correct Answer
    C. They require short-term costs in exchange for improved long-term results.­
    Explanation
    Investments in physical and human capital require short-term costs in exchange for improved long-term results. This means that companies need to invest money, time, and resources in order to acquire and develop physical assets (such as machinery, equipment, and infrastructure) as well as human resources (such as training, education, and skills development). While these investments may result in short-term costs, they are expected to lead to increased productivity, efficiency, and competitiveness in the long run, ultimately contributing to improved standards of living and employment opportunities.

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  • 21. 

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

    • A.

      Higher tax rates on its workers' incomes

    • B.

      Improvements in its trade relations

    • C.

      Advances in its technology

    • D.

      None of the above

    Correct Answer
    C. Advances in its technology
    Explanation
    Advances in technology are most likely to improve a company's overall productivity. This is because technological advancements can streamline processes, automate tasks, and enhance efficiency, leading to increased productivity. By adopting new technologies, companies can reduce manual labor, minimize errors, and optimize resource allocation, ultimately improving their overall performance and output. Higher tax rates on workers' incomes and improvements in trade relations may have indirect effects on a company's productivity, but they are not directly linked to enhancing productivity like advances in technology.

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  • 22. 

    Dividing total output by total input is a way to measure

    • A.

      Productivity

    • B.

      Relative price

    • C.

      Absolute advantage

    • D.

      Comparative advantage

    Correct Answer
    A. Productivity
    Explanation
    Dividing total output by total input is a way to measure productivity. This calculation allows us to determine how efficiently resources are being used to produce goods or services. By comparing the amount of output generated to the amount of input used, we can assess the productivity level of a particular process, industry, or economy. Higher productivity indicates that more output is being produced with the same or fewer resources, which is generally desirable for economic growth and efficiency. Therefore, productivity is the most appropriate term to describe the measurement obtained through this division.

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  • 23. 

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

    • A.

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

    • B.

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

    • C.

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

    • D.

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

    Correct Answer
    D. Total value of final goods and services produced per year within the nation's borders
    Explanation
    The correct answer is "total value of final goods and services produced per year within the nation's borders". GDP is a measure of the total economic output of a country, including both goods and services. It represents the value of all final goods and services produced within the country's borders during a specific period of time, usually a year. This includes consumer goods, investment goods, government spending, and net exports. It is an important indicator of a country's economic health and is used to compare the economic performance of different countries.

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  • 24. 

    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?

    • A.

      The company paid lower wages to the workers\

    • B.

      The workers increased their productivity

    • C.

      The demand for automobiles decreasedm

    • D.

      None of the above

    Correct Answer
    B. The workers increased their productivity
    Explanation
    The most likely explanation for the automobile manufacturer's 5% increase in profit is that the workers increased their productivity. This means that they were able to produce more automobiles or improve the efficiency of their production process, resulting in higher output with the same amount of resources. As a result, the company was able to generate more profit without incurring additional costs.

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  • 25. 

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

    • A.

      Lower rates of inflation in Country A

    • B.

      Lower levels of consumer spending in Country A

    • C.

      Higher rates of unemployment in Country A

    • D.

      Higher standards of living for people in Country AL

    Correct Answer
    D. Higher standards of living for people in Country AL
    Explanation
    An economist would argue that the situation described above would most likely result in higher standards of living for people in Country A. This is because lower rates of inflation would lead to greater purchasing power for consumers, allowing them to afford more goods and services. Additionally, lower levels of consumer spending may lead to increased savings and investments, which can contribute to economic growth and higher living standards. Higher rates of unemployment and lower levels of consumer spending would have a negative impact on the economy and living standards.

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  • 26. 

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

    • A.

      Production costs are rarely if ever passed along to consumers

    • B.

      Entrepreneurs generally increase production when their own costs go up

    • C.

      Production cost increases are likely to increase consumer demand for goods

    • D.

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

    Correct Answer
    D. Consumers may ultimately have fewer choices as a result of higher production costs
    Explanation
    When government regulations increase entrepreneurs' costs of production, it becomes more expensive for them to produce goods or services. As a result, entrepreneurs may have to cut costs in other areas, such as reducing the variety of products they offer or limiting their production capacity. This can lead to fewer choices for consumers in the market. Therefore, consumers may ultimately have fewer options to choose from as a result of higher production costs imposed by government regulations.

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  • 27. 

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

    • A.

      The lowest total costs

    • B.

      The highest possible revenues

    • C.

      The most equality between costs and revenues

    • D.

      The greatest positive difference between costs and revenues

    Correct Answer
    D. The greatest positive difference between costs and revenues
    Explanation
    To maximize profits, a business aims to achieve the greatest positive difference between costs and revenues. This means that the business wants to generate higher revenues than the costs incurred in producing goods. By doing so, the business can ensure that it is making a profit and not operating at a loss. This approach allows the business to optimize its financial performance and achieve its goal of maximizing profits.

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  • 28. 

    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

    • A.

      1 item per worker per hour

    • B.

      2 items per worker per hour

    • C.

      3.5 items per worker per hour

    • D.

      7 items per worker per hour

    Correct Answer
    B. 2 items per worker per hour
    Explanation
    The labor productivity at the company is calculated by dividing the total number of items produced per week (7,000) by the total number of worker-hours per week (100 workers * 35 hours per week). This gives us a labor productivity of 2 items per worker per hour.

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  • 29. 

    The MAIN purpose of using division of labor is to

    • A.

      Distribute work evenly

    • B.

      Lower transaction costs

    • C.

      Improve productivity

    • D.

      Increase consumption

    Correct Answer
    C. Improve productivity
    Explanation
    The main purpose of using division of labor is to improve productivity. By dividing tasks and assigning them to individuals based on their skills and expertise, each person can focus on their specific role, leading to increased efficiency and output. This specialization allows workers to become more proficient in their tasks, leading to time and resource savings. Ultimately, this leads to higher productivity levels within the organization.

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  • 30. 

    Which of these actions is an investment in human capital?

    • A.

      Paying higher wages

    • B.

      Saving more money

    • C.

      Learning new skills

    • D.

      Buying equipment

    Correct Answer
    C. Learning new skills
    Explanation
    Learning new skills is an investment in human capital because it involves acquiring knowledge and expertise that can enhance an individual's productivity and potential for future economic growth. By continuously learning and developing new skills, individuals can improve their employability, increase their earning potential, and contribute more effectively to the workforce. This investment in human capital not only benefits individuals but also has positive effects on the overall economy by fostering innovation, improving productivity, and driving economic development.

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  • 31. 

    Which expense is most likely a fixed cost?

    • A.

      Wages for workers

    • B.

      Monthly shipping charges

    • C.

      Rent for a company’s warehouse

    • D.

      Raw materials used in production

    Correct Answer
    C. Rent for a company’s warehouse
    Explanation
    Rent for a company's warehouse is most likely a fixed cost because it is a recurring expense that remains constant regardless of the level of production or sales. Unlike wages for workers, which can vary depending on the number of hours worked or production demands, or raw materials used in production, which fluctuate with the level of production, rent for a company's warehouse is typically a fixed amount that needs to be paid regularly regardless of business activity. Monthly shipping charges can also vary depending on the volume of shipments, making them less likely to be a fixed cost compared to rent.

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  • 32. 

    Which of the following best completes the statement above?

    • A.

      Fixed costs

    • B.

      Fixed benefit

    • C.

      Marginal cost

    • D.

      Marginal benefit

    Correct Answer
    D. Marginal benefit
    Explanation
    The statement above is discussing a situation where there are fixed costs involved. In order to complete the statement, we need to choose an option that complements the concept of fixed costs. Out of the given options, "marginal benefit" is the best choice as it refers to the additional benefit gained from producing or consuming one more unit of a good or service. This concept is relevant to the discussion of fixed costs as it helps determine whether the additional cost incurred by producing or consuming more units is justified by the additional benefit gained.

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  • 33. 

    An economist would most likely define economic growth as

    • A.

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

    • B.

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

    • C.

      A higher level of employment in manufacturing and agriculture

    • D.

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

    Correct Answer
    D. A sustained increase in the nation's production of goods and services
    Explanation
    Economic growth is typically defined as a sustained increase in a nation's production of goods and services. This means that over time, the country is able to produce and provide more goods and services to its population. This is an important indicator of economic progress and development, as it signifies an expansion of the economy and an improvement in living standards. Increased production can lead to higher employment rates, increased profits, and an overall improved standard of living for the population.

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  • 34. 

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

    • A.

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

    • B.

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

    • C.

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

    • D.

      All of the above.

    Correct Answer
    D. All of the above.
    Explanation
    Investing in human capital, which refers to improving the skills, knowledge, and abilities of workers, is likely to have multiple positive effects. By increasing a worker's abilities on the job, it can enhance productivity. This increased productivity can lead to higher standards of living in the future, as workers become more efficient and effective in their roles. Additionally, investing in human capital can also reduce the cost of doing business, as more skilled and knowledgeable workers can perform tasks more efficiently. Therefore, all three statements - increased productivity, raised future standards of living, and reduced cost of doing business - are likely to be true when investing in human capital.

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  • 35. 

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

    • A.

      Total cost falls as more units are produced.

    • B.

      Average fixed cost falls as more units are produced.

    • C.

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

    • D.

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

    Correct Answer
    B. Average fixed cost falls as more units are produced.
    Explanation
    As a business increases the quantity it produces, the average fixed cost falls. This is because fixed costs are spread over a larger number of units, resulting in a lower average cost per unit. For example, if a business has fixed costs of $10,000 and produces 1,000 units, the average fixed cost would be $10 per unit. However, if the business increases production to 2,000 units, the average fixed cost would decrease to $5 per unit. Therefore, as the quantity produced increases, the average fixed cost decreases.

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  • 36. 

    In economic terms, worker specialization is likely to lead to

    • A.

      Fewer job options

    • B.

      Greater productivity

    • C.

      Increased production costs

    • D.

      Exclusion from the job market

    Correct Answer
    B. Greater productivity
    Explanation
    Worker specialization is likely to lead to greater productivity because when workers specialize in a specific task or skill, they become more efficient and proficient in performing that task. This increased expertise allows them to complete the task more quickly and effectively, leading to higher productivity levels. Additionally, specialization allows for the division of labor, where each worker focuses on their area of expertise, leading to a smoother workflow and improved overall productivity.

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  • 37. 

    Do you prefer this quiz to the older ones or id you like it before?

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