economic midterm
Question 1
0.5 out of 0.5 points St. Charles Hospital, located in an upper-income neighborhood of a large city, recently received a restored mansion as a gift from an appreciative patient. The board of directors decided to remodel the mansion and use it as recuperative quarters for patients willing to pay a premium for luxurious accommodations. The cost to the hospital of using the mansion includes Selected Answer: d. both b and c Question 2
0 out of 0.5 points Which of the following statements is false? Selected Answer: c. d
If economic profit is positive, accounting profit must also be positive. Question 3
0.5 out of 0.5 points Economic profit is the best measure of a firm’s performance because Selected Answer: d. the opportunity cost of using ALL resources is subtracted from total revenue. Question 4
0.5 out of 0.5 points Mallory decides to spend three hours working overtime rather than watching a video with her friends. She earns $8 an hour. Her opportunity cost of working is Selected Answer: d. the enjoyment she would have received had she watched the video. Question 5
0.5 out of 0.5 points Russell spends an hour studying instead of playing tennis. The opportunity cost to him of studying is Selected Answer: c. the enjoyment and exercise he would have received had he played tennis. Question 6
0.5 out of 0.5 points Economic profit Selected Answer: a. will never exceed accounting profit. Question 7
0 out of 0.5 points Bev is opening her own court-reporting business. She financed the business by withdrawing money from her personal savings account. When she closed the account, the bank representative mentioned that she would have earned $300 in interest next year. If Bev hadn’t opened her own business, she would have earned a salary of $25,000. In her first year, Bev’s revenues were $30,000. Which of the following
0.5 out of 0.5 points St. Charles Hospital, located in an upper-income neighborhood of a large city, recently received a restored mansion as a gift from an appreciative patient. The board of directors decided to remodel the mansion and use it as recuperative quarters for patients willing to pay a premium for luxurious accommodations. The cost to the hospital of using the mansion includes Selected Answer: d. both b and c Question 2
0 out of 0.5 points Which of the following statements is false? Selected Answer: c. d
If economic profit is positive, accounting profit must also be positive. Question 3
0.5 out of 0.5 points Economic profit is the best measure of a firm’s performance because Selected Answer: d. the opportunity cost of using ALL resources is subtracted from total revenue. Question 4
0.5 out of 0.5 points Mallory decides to spend three hours working overtime rather than watching a video with her friends. She earns $8 an hour. Her opportunity cost of working is Selected Answer: d. the enjoyment she would have received had she watched the video. Question 5
0.5 out of 0.5 points Russell spends an hour studying instead of playing tennis. The opportunity cost to him of studying is Selected Answer: c. the enjoyment and exercise he would have received had he played tennis. Question 6
0.5 out of 0.5 points Economic profit Selected Answer: a. will never exceed accounting profit. Question 7
0 out of 0.5 points Bev is opening her own court-reporting business. She financed the business by withdrawing money from her personal savings account. When she closed the account, the bank representative mentioned that she would have earned $300 in interest next year. If Bev hadn’t opened her own business, she would have earned a salary of $25,000. In her first year, Bev’s revenues were $30,000. Which of the following