Micro Economics Flashcards

Unlock all answers in this set

Unlock answers
question
A payment for the use of any resource over and above its opportunity cost is called...
answer
Economic rent
question
Economic rent is any payment...
answer
in excess of the resource's opportunity cost
question
world-class models receive enormous economic rents becuase...
answer
thier talents and abilities are in a fixed supply
question
Economic rent directs resources to...
answer
the ppl who can use them most efficiently
question
The fundamental goal of a firm or business is to...
answer
earn the highest possible returns
question
A business which is owned by two or more ppl is called a...
answer
partnership
question
Which of the following is a disadvantage of the coporate form of business organization?
answer
Double taxation
question
Onw disadvantage of a partnership is...
answer
Difficulty raising funds
question
One advantage of a partnership is..
answer
They are easy to form
question
The main advantage of a coporate form of organization is that...
answer
shareholders have limited liablility
question
In general, which form if business organizatio has the greates capacity to raise large sums of financial capital?
answer
Corporations
question
The owners of a coporation are..
answer
The shareholders
question
implicit costs are measure by..
answer
The value of the alternative uses of the resources used in production
question
The implicit cost incurred by a firm to use its resources to produce its output is the firm's..
answer
Opportunity cost
question
Which is the best example of a firm's implicit costs?
answer
The opportunity cost of owner-provided labor
question
Explicit costs are...
answer
Opportunity cost of capital
question
Interest is paid to
answer
Owners of the capital
question
Interest can be defined as..
answer
the return paid to owners of capital
question
The greater risk of non repayment of a loan..
answer
higher the expected rate of interest
question
Economists generally define the short run as being...
answer
that period of time in which at least one of the firm's inputs, usually plant size, is fixed.
question
Which of the following is TRUE about the long run?
answer
All resources are variable
question
During the short run, a firm cannot...
answer
Change its plant size
question
In economics, how long is the long run?
answer
Whatever time it takes a firm to vary all inputs
question
Production functions indicate the relationship between..
answer
factor inputs and the quanity of output
question
Suppose on worker can produce 15 cookies, two workers can produce 35 togehter and 3 workers can produce 65 togehter. What is the Marginal product of the second worker?
answer
20 cookies
question
A negative value for the marginal physical product would indicate that..
answer
total output decrease when the unit of the variable input was added
question
If marginal product is negative, then..
answer
total product is fallingq
question
When total product is rising...
answer
marginal product must be positive
question
Marginal cost begins to rise when
answer
Diminishing marginal product begins
question
The law of diminishing marginal product states that..
answer
successive equal-sized increases in labor, when added to fixed factors of production, will result in smaller increases of output.
question
What happens at a firm's point of saturation?
answer
For the first timem hiring an additional worker decreases total product
question
TC=???
answer
TC=FC+VC
question
ATC=???
answer
Total cost/Quantity
question
Marginal Cost=??
answer
Changes in Cost/Changes in Quantity
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New