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Stack #1211955

Question	Answer
Inputs for a business are the goods and services that it sells to its customers	false
Outputs are always goods	false
Cost is what a business receives after subtracting expenses from revenue	false
Marginal cost is the added expense of producing one more unit of output	true
Businesses have two types of cost: fixed and variable	true
Marginal revenue is the additional revenue a business gets from producing or selling one more unit of input	false
money that customers pay for the output of a business	revenue
goods and services that are used to produce outputs for a business	inputs
money that a business pays for its inputs	cost
difference between revenue and cost	profit
main objective of a business in a market economy	profit maximization
Input used by a business in the production process	labor
main goal of most businesses	maximize profits
The hours of work supplied by various types of workers	labor
The long-lived physical equipment and structures that a business uses in its production process are called	capitol
The technology or knowledge necessary for the production process is called	business know-how
technology is _____ in the equipment a company buys	embodied
In a lawn-mowing business where you have a push mower and labor as input, by adding capital, what would be the impact on output	output would increase
The extra amount of output a business can generate by adding one more hour of labor	marginal product
add too many inputs a business may experience	diminishing marginal product
The price of labor per unit times the amount of labor	labor cost
The total cost of production	Labor, capital and land intermediate inputs business know-how
______ shows the potential cost for each level of output	The cost function
The added expense of producing one more unit of output	marginal cost
Marginal cost ________ with quantity produced	rises
Variable costs are also known as	short term cost
An example of variable costs	hourly labor
Variable costs are relevant for	short-term everyday decision making
The short-term cost function assumes that	Fixed costs can't be changed.
In short-run profit maximization, businesses focus on the ______, holding fixed costs constant	short-term cost function
In the process of long-term profit maximization, the business makes decisions under the assumption that it can	vary all the inputs
The __________ summarizes the output of the business, given the level of inputs	production function
Which of the following is an example of a profit-maximizing business	An accountant who makes her living preparing tax returns for other people.
Theodore can make 6 pizzas in one hour. If Theodore's labor has a diminishing marginal product, what must be true about the number of pizzas that Theodore can make in three hours	It must be less than 18
What happens to the marginal product of labor if more capital is added to a production process	More capital generally causes the marginal product of labor to rise
If Sara can produce 25 muffins for a total cost of $15, but her production process is subject to increasing marginal costs, which of the following could be the total cost of producing 100 muffins?	80
Fixed costs are also known as __________ costs because they are much harder for a business to change.	long term
When a business expands production and increases sales, what generally happens to revenue	Revenue rises because the business is selling more output.
As the market price of a good rises, businesses will respond by producing more of that good because	marginal revenue exceeds marginal cost after the price increase.
In the real world markets are perfectly competitive	false
`under President John F. Kennedy, the United States expanded its highway system	false
In 1971 President Richard Nixon announced a 90-day freeze on wage and price increases to stem economic stagflation	true
Deregulation began with the oil price shock	true
inefficiency of taxation means that imposing a tax on a good or service typically	reduces the amount produced
the WPA government agency that	increased employment through construction projects
The New Deal was	legislation passed by the Roosevelt administration
The Public Broadcasting Service and National Public Radio are examples	nonprofit government-funded organizations
United States has one of the __________ public sectors	smallest
example of the government command approach	Public schools
The Wage and Price Controls of 1971 example of	command approach intervention
The original research that culminated in the Internet was sponsored by	The Defense Department
The era of deregulation began	1970's
Rent-seeking behavior can cause	corruption in public officials
The inefficiency of taxation	imposing a tax on goods typically reduces the amount produced.
What happens to the market price that buyers face as a result of taxation	It is greater than before the tax was imposed
voluntary associations that provide public goods and benefit but do not pay for it	free-rider problem
government sets the rules for market competition	Market regulation
The Uniform Commercial Code governs	commercial transactions between companies and consumers
The Federal Reserve Board is responsible for	supervising the financial and monetary system
The Federal Trade Commission is responsible for enforcing	antitrust law
The U.S. Consumer Product Safety Commission is responsible for	regulating the flammability of mattresses
The New Deal legislation passed by President Roosevelt was inspired by	the Great Depression
The disadvantages of government intervention include	incentive problems
The unintentional impact that the actions of an individual can have on others is called:	an externality
Imposing a tax on a market typically hurts	both buyers and sellers
The potential profit from new technological advancements and innovations	Gives the private sector a better incentive to commercialize new technologies
The laws that prevent companies from unfairly trying to get market power or reduce the amount of competition in a market	antitrust laws.
person's actions harm others economists call	negative externality

Created by: kmorquecho

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