Economics
Question 1 (Multiple Choice Worth 5 points)
(03.02 MC)<object:standard:ss.912.e.1.1>
Your friend wants to open a hamburger stand. A necessary labor resource is
a truck
ground beef
a grill
a chef
Question 2 (Multiple Choice Worth 5 points)
(03.06 MC)<object:standard:ss.912.e.1.2>
© FLVS 2013
Use this image to answer the following question. The ice cream shop
wants to produce mostly chocolate ice cream
wants to produce mostly strawberry ice cream
would operate inefficiently if it produced 6 gallons of both flavors
is most efficient when it produces 2 gallons of strawberry ice cream
Question 3 (Multiple Choice Worth 5 points)
(03.05 HC)<object:standard:ss.912.e.1.7>
Marginal Cost Analysis Chart: ProPhone Blazer
Quantity of Jackets
Price (in whole dollars)
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
Profit (or loss)022000900 120020020017080 218036016020030 316048012029090 415060012034050 514070010040060 613581090500100 7130910100620120
The owner of ProPhone has charted the company’s marginal revenue and marginal cost for its latest line of smartphones, the Blazer. Use the chart to calculate the company’s profit. If ProPhone sells four phones, the company will
break even
lose money
maximize profits
make some profit
Question 4 (Multiple Choice Worth 5 points)
(03.04 MC)<object:standard:ss.912.e.1.6>
Why do monopolies and oligopolies benefit producers over consumers?
Companies control price through demand.
Competition is driven by factors other than price.
Demand influences production more when competition is less.
Few producers can generally control prices.
Question 5 (Multiple Choice Worth 5 points)
(03.03 MC)<object:standard:ss.912.e.1.5>
Your friend hopes to expand her business to multiple locations. It would be best for her to create a
limited liability company
sole proprietorship
corporation
partnership
Question 6 (Multiple Choice Worth 5 points)
(03.06 MC)<object:standard:ss.912. e.1.9=””>
A university has just hired additional faculty and staff. Who of the following is most likely to earn the highest pay?
Chemistry professor with a doctoral degree
Economics graduate student teaching assistant
Education lecturer with a master’s degree
Classics department office manager with a bachelor’s degree
Question 7 (Multiple Choice Worth 5 points)
(03.05 MC)<object:standard:ss.912.e.1.7>
Quantity of Jackets
Price (in whole dollars)
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
Profit (or loss)020 12020 18 21938 33 31854 43 41768 55 51680 68 61590 83 71498 101 813104 120
Based on this chart, what is the marginal cost, in dollars, to produce two jackets?
Five
15
18
33
Question 8 (Multiple Choice Worth 5 points)
< style=”font-family: ‘Times New Roman’; font-size: medium; line-height: normal;”>(03.04 LC)<object:standard:ss.912.e.1.8>
The greatest goal in advertising is to convince us
“wants” are unnecessary
the firm has the best price
a particular product is a “need”
the product is the same as other firm’s products
Question 9 (Multiple Choice Worth 5 points)
(03.06 HC)<object:standard:ss.912.e.1.2>
© FLVS 2013
Mad Hatter Publishing specializes in genre fiction for young adults. A movie company decides to make an adaptation of one of its popular science-fiction novels. Currently, production at Mad Hatter is at point T. To which point or points is production likely to shift?
Q or R
R or V
T or V
V or Q
Question 10 (Multiple Choice Worth 5 points)
(03.06 MC)<object:standard:ss.912.e.1.2>
© FLVS 2013
Use this image to answer the following question. The ice cream shop needs 5 pounds of strawberries for every gallon of strawberry ice cream. The shop chose to produce 4 gallons of chocolate ice cream. How many pounds of strawberries should the shop purchase?
24
30
40
60
Question 11 (Multiple Choice Worth 5 points)
(03.04 MC)<object:standard:ss.912.e.1.8>
“Buy our cell phone with built-in calendar and reminder features! This way you will never forget an appointment while on the go.” This advertisement targets your
fears
rituals
emotions
social values
Question 12 (Multiple Choice Worth 5 points)
(03.01 LC)<object:standard:ss.912.e.2.3>
Samuel F.B. Morse patented the
telegraph
automobile
audio recorder
radio transmitter
Question 13 (Multiple Choice Worth 5 points)
(03.06 MC)<object:standard:ss.912.e.1.9>
A company will continue to hire workers until
there is no more room in the facility
the government restriction on workforce is reached
the additional profit is less than the cost of hiring
there is no more money available for capital investment
Question 14 (Multiple Choice Worth 5 points)
(03.06 MC)<object:standard:ss.912.e.2.5>
Marco works as a freelance science writer. He wants to improve his productivity. Which of the following steps is he most likely to take?
Build a website highlighting his expertise and publications
Take a week off to relax and play video games
Invest in a better computer and a faster Internet connection
Take out an advertisement for his services
Question 15 (Multiple Choice Worth 5 points)
(03.02 MC)<object:standard:ss.912.e.1.1>
Meg and her mother are opening a cupcake shop. They buy an oven, a walk-in cooler, and a decorating table. In terms of factors of production, what are these items?
Capital
Entrepreneurship
Labor
Land
Question 16 (Multiple Choice Worth 5 points)
(03.06 MC)<object:standard:ss.912.e.2.5>
Which of the following is the most profitable investment for a game shop earning $2 profit from every game sold?
Vehicle with $120 daily operating cost, delivering 80 games per day
Inventory software with $10 daily operating cost, saving 30 games per day from theft
Game cleaning system with $5 daily operating cost, increasing sales by 15 games per day
Electronic billboard with $20 daily operating cost, increasing sales by 20 games per day
Question 17 (Multiple Choice Worth 5 points)
(03.03 MC)<object:standard:ss.912.e.1.5>
Stefan has inherited a large amount of money and decides he wants to start a skateboard shop. He has money to invest up front, but he lacks business expertise. Which of the following would be his best business options, depending on what he is willing to risk?
Corporation or sole proprietorship
Limited liability company or corporation
Partnership or limited liability company
Sole proprietorship or partnership
Question 18 (Multiple Choice Worth 5 points)
(03.05 MC)<object:standard:ss.912.e.1.7>
Quantity of Jackets
Price (in whole dollars)
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
Profit (or loss)020 12020 18 21938 33 31854 43 41768 55 51680 68 61590 83 71498 101 813104 120
Based on this chart, what is the marginal revenue, in dollars, at quantity five jackets?
12
13
52
64
Question 19 (Multiple Choice Worth 5 points)
(03.04 LC)<object:standard:ss.912.e.1.6>
A monopoly is a market for a good or service that
has few competitive firms
is perfectly competitive
has one buyer
has one seller
Question 20 (Multiple Choice Worth 5 points)
(03.06 MC)<object:standard:ss.912.e.2.5>
Which of the following is the most profitable investment for a candy shop that earns $1 profit per pound of candy?
Worker at $10 per hour, producing eight pounds of candy per hour
Worker at $12 per hour, producing 16 pounds of candy per hour
Machine with $5 per hour operating cost, producing 10 pounds of candy per hour
Machine with $8 per hour operating cost, producing 14 pounds of candy per hour
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