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Economics: Basics to Costs Flashcards | StudBud

Explore/Economics: Basics to Costs

Economics: Basics to Costs

7 terms·StudBud Administration·90 plays

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Questions 7

Answers

1
What is elasticity of demand?
Consumer response to price change
Has no relationship to price
Producer response to price change
Variable response to price change
2
Which of the following would NOT be a possible short-run adjustment for a firm?
Shutting down machinery in the factory
Adding an additional factory to production
Hiring more labor
Adding more hours to the workday
3
Which of the following would cause the PPC for a firm to shift right?
An increase in labor to a factory
Competition between other firms
Government regulation on the industry
A recession
4
Economists differentiate the short run from the long run by noting that
in the short run all costs are variable.
in the long run all costs are variable.
in the long run all costs are fixed.
in the short run all costs of fixed.
5
Which of the following is an example of an implicit cost?
Time used to train an employee
Computers used in an office
Wages
Rent
6
What is elasticity of supply?
Consumer response to price change
Producer response to price change
Variable response to price change
No relationship to price change
7
The minimum level of economic profit a company needs to stay in business is
Normal Profit
Economic Profit
Total Revenue
Accounting Profit