Eco/561 Final Exam
ECOP/561 Final Examination Study Guide
This study guide will prepare you for the Final Examination you will complete in the final week. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination.
Week One: Increasing Revenue
Objective: Choose methods to increase revenue in an organization.
1. In a market economy the distribution of output will be determined primarily by a. consumer needs and preferences b. the quantities and prices of the resources that households supply c. government regulations that provide a minimum income for all d. social consensus as to what distribution of income is most equitable …show more content…
$100,000 and its economic profits were $100,000 d. zero and its economic loss was $200,000
12. Which of the following represents a long-run adjustment? a. A farmer uses an extra dose of fertilizer on his corn crop. b. A U.S. watch manufacturer sells one of its branch plants and is unable to meet foreign competition. c. A steel manufacturer cuts back on its purchases of coke and iron ore. d. A supermarket hires four additional clerks.
Objective: Apply economic cost concepts in making business decisions.
13. A profit-maximizing firm will e. expand employment if marginal revenue product exceeds marginal resource cost f. reduce employment if marginal revenue product exceeds marginal resource cost g. expand employment if marginal revenue product equals marginal resource cost h. reduce employment if marginal revenue product equals marginal resource cost
14. A firm can hire six workers at a wage rate of $8 per hour but must pay $9 per hour to all of its employees to attract a seventh worker. The marginal wage cost of the seventh worker is a. $9 b. $10 c. $15 d. $21
Week Three: Market Structure
Objective: Determine pricing strategy to meet organizational
This study guide will prepare you for the Final Examination you will complete in the final week. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination.
Week One: Increasing Revenue
Objective: Choose methods to increase revenue in an organization.
1. In a market economy the distribution of output will be determined primarily by a. consumer needs and preferences b. the quantities and prices of the resources that households supply c. government regulations that provide a minimum income for all d. social consensus as to what distribution of income is most equitable …show more content…
$100,000 and its economic profits were $100,000 d. zero and its economic loss was $200,000
12. Which of the following represents a long-run adjustment? a. A farmer uses an extra dose of fertilizer on his corn crop. b. A U.S. watch manufacturer sells one of its branch plants and is unable to meet foreign competition. c. A steel manufacturer cuts back on its purchases of coke and iron ore. d. A supermarket hires four additional clerks.
Objective: Apply economic cost concepts in making business decisions.
13. A profit-maximizing firm will e. expand employment if marginal revenue product exceeds marginal resource cost f. reduce employment if marginal revenue product exceeds marginal resource cost g. expand employment if marginal revenue product equals marginal resource cost h. reduce employment if marginal revenue product equals marginal resource cost
14. A firm can hire six workers at a wage rate of $8 per hour but must pay $9 per hour to all of its employees to attract a seventh worker. The marginal wage cost of the seventh worker is a. $9 b. $10 c. $15 d. $21
Week Three: Market Structure
Objective: Determine pricing strategy to meet organizational