Unit 3 – Flashcards

Joseph Unahue made his fortune in-? A. Men's professional attire. B. Digital technology. C. Food distribution. D. Stock options.

Your friend wants to open a hamburger stand. A necessary labor resource is-? A. A truck. B. Ground beef. C. A grill. D. A chef.

Jessica is a violinist who believes she can extend her method of learning music to early childhood education. She opens a preschool in her hometown, using her expertise to form an arts-based program. What factor of production is this? A. Capital. B. Entrepreneurship. C. Labor. D. Land.

Your friend lacks the financial capital to start a business. You offer to help him and he accepts. You are your friend create a-? A. Sole proprietorship. B. Conglomerate. C. Corporation. D. Partnership.

Root and Vine is a gardening collective and local delivery service started by two friends.Their clientele has grown, and they want to expand. The owners like the idea of protecting their personal property, but they want to maintain control of the business. Which type of organization might be suit their growth? A. Sole proprietorship. B. Partnership. C. Limited liability company. D. Corporation.

A monopoly is a market for a good or service that-? A. Has few competitive firms. B. Is perfectly competitive. C. Has one buyer. D. Has one seller.

A firm's purpose in nonprice competition is to-? A. Produce at the lowest cost possible. B. Encourage other firms to cooperate in setting prices. C. Establish extensive control of their particular market. D. Distinguish their products from those of other companies.

"Don't be like John, who had no health insurance when he needed emergency surgery. We make health insurance and affordable." This advertisement targets your-? A. Fears B. Rituals. C. Emotions. D. Social Values.

Why do purely competitive market tend to benefit consumers over producers? A. Companies control quantity and supply. B. Companies work together to set prices favorable to consumers. C. Competition is driven by factors other than price. D. Consumers control price through demand.

Based on this chart, what is the marginal cost, in dollars, to produce seven jackets? A. 18. B. 27. C. 101. D. 121.

Based on this chart, what is the marginal revenue, in dollars, at quantity five jackets? A. 12. B. 13. C. 52. D. 64.

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. What is the difference between marginal cost and marginal revenue at the point when profits are maximized on the chart? A. 10. B. 20. C. 30. D. 40.

Use this image showing he production possibilities curve for shifts at Burger World and college classes to answer the following question. Marcy needs about 6 hours per week for each college class. If she works two shifts each week, how many hours will she spend on her classes if working efficiently. A. 6. B. 12. C. 24. D. 36.

Use this image to answer the following question. If there are only enough strawberries to produce 2 gallons of strawberry ice cream, how many gallons of chocolate ice cream can the shop efficiently produce? A. 0. B. 4. C. 12 D. 15.

Stacy owns a hair salon and haircuts are $10. She charges hairdressers $20 per hour to rent a chair and serve clients. What is the minimum number of haircuts a hairdresser should give per hour to earn money at Stacy's salon? A. Two. B. Three. C. Four. D. Five.

Which investment produces a $5 hourly profit for candy shop earning $1 profit per pound of candy? A. Worker at $10 per hour, producing eight pounds of candy per hour. B. Worker at $12 per hour, producing 16 pounds of candy per hour. C. Machine with $5 per hour operating cost, producing 10 pounds of candy per hour. D. Machine with $8 per hour operating cost, producing 14 pounds of candy per hour.

Which investment produces a $40 daily profit for a game shop earning $2 profit from every game sold? A. Vehicle with $120 daily operating cost, delivering 80 games per day. B. Inventory software with $10 daily operating cost, saving 30 games per day from theft. C. Game cleaning system with $5 daily operating cost, increasing sales by 15 games per day. D. Electronic billboard with $20 daily operating cost, increasing sales by 20 games per day.

Mad Hatter Publishing specializes in genre fiction for young adults. A popular mystery author has just completed the final book in a trilogy. Currently, production at Mad Hatter Publishing is at point R. To which point or points is production likely to shift? A. Q or R. B. Q or T. C. T or V. D. V or Q.

Sam works as a transcriptionist for $30,000 per year, and Janet works as a jet propulsion specialist for $73,000 per year. Which of the following statements could best explain the disparity in their incomes? A. Janet's expertise is in low supply and low demand. B. Janet's expertise is in low supply and high demand. C. Sam's expertise is in high supply and high demand. D. Sam's expertise is in low supply and high demand.

Starry Night Studios offers classes in painting, drawing, sculpting, and woodworking. It refurbished an old townhome but did not invest in a new furnace. Winter is coming. If the furnace breaks, Starry Night Studios will most likely-? A. Extend hours. B. Expand Inventory. C. Hire artists. D. Lose business.