ECO/365 Short Quiz-Wk3 Name: ___Melissa Tavares___

1) Lisa quit her $40,000-per-year job to start her own economics consulting firm. At the end of her first year of operation, her total revenues were $150,000. Her total explicit costs were $108,000. Her economic profit for the year was: a) $0 b) $2,000 c) $42,000 d) $ 48,000

2) Diminishing marginal productivity of labor occurs because: e) management will eventually make a mistake. f) some workers just aren't very capable. g) additional workers cannot be as effective as previously hired workers because other inputs are fixed. h) machines will start to break down and it takes time to fix them.

3) Given the table above, what are the fixed costs for 3 units of output? i) $3.30 j) $4.00 k) $6.00 l) $18.00

4) Which of the curves above best represents a typical average variable cost curve? m) A n) B o) C p) D

5) The production method that produces a given level of output at the lowest possible cost is considered: q) economically efficient. r) allocatively efficient. s) technically efficient. t) profitably efficient.

6) The envelope relationship in chapter 13 describes: u) the relationship of management to workers. v) the relationship between the long run average cost curve and the short run average cost curves. w) the importance of good stationary in the modern economy. x) the relationship between economies of scale and diseconomies of scale.

7) The ____________ sees opportunities to sell goods at prices higher than production costs and organizes the factors of production to make that good: y) cost curve. z) government. {) entrepreneur |) consumer.

8) The graph above shows a