Econ b251 - Study guides, Class notes & Summaries

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Econ B251 Quizzes 1-9 Review Questions and Answers

ECON B251 FINAL EXAM WITH VERIFIED ANSWERS 100%

Explicit costs correct answers Out-of-pocket production expenses recorded using the accounting method Implicit costs correct answers Measure the alternative uses of 3 types of resources, such as physical capital, interest payment, and time Normal profit correct answers The income associated with the entrepreneur Command system correct answers When workers follow directions from their boss above them and provide feedback to their boss Incentive system correct answers When firms have a...

ECON B251 Final Exam qestions and answers Scarcity Principleall actions have tradeoffs Opportunity Costcall of the best foregone alternative action Marginal cost-benefit principletake an action if and only if the extra benefits are at least as great as the extra costs Absolute advantagethe ability to complete a task using less resources (time, money, etc.) Comparative advantagelower opportunity cost Efficientif there is no alternative that improves outcomes for s...

ECON B251 Exam 1 questions and answers Because we face scarcity, every choice involves: a) money b) time and money c) marginal benefity d) trad-offsD. trade-offs You decide to take a vacation and the trip costs you 1,254. While you are on vacation, you do not report to work where you could have earned 123. The opportunity cost of the vacation is $_______.1,377 Strategic decisions include- one's own benefits - one's own costs - other's decisions The nig...

Econ B251 Final Exam questions and answers Explicit costsOut-of-pocket production expenses recorded using the accounting method Implicit costsMeasure the alternative uses of 3 types of resources, such as physical capital, interest payment, and time Normal profitThe income associated with the entrepreneur Command systemWhen workers follow directions from their boss above them and provide feedback to their boss Incentive systemWhen firms have a well-defined and well i...

ECON-B251 Final Exam qustions and answers What is a firm's goal?maximize economic profit Accounting Profit- daily, weekly, monthly recordings of all bills/costs paid by the firm doesn't fully measure opportunity cost Economic profitthe total revenue - total costs: explicit and the opportunity costs paid by the firm (implicit) this is the profit that is referred to when it says a firm's profit firms make decisions off economic profit Opportunity costexplicit...