Producers & Production in Microeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Gary owns a business that manufactures ice cream cones. He uses a machine that produces 24 cones at a time. Paul placed an order of 220 cones, but later asked to add 5 more cones to his order. What expense will be required for Gary to manufacture the additional 5 cones?

Question 2 2. _____ is the total amount produced per a set of resources.

Question 3 3. If a company is trying to determine a fair price for its goods, which of the following matters the most?

Question 4 4. Sarah owns a factory that produces tin cans. A company puts in an order for twice as many cans as usual, but only for one month. Why might Sarah turn down this order?

Question 5 5. Identify a fixed cost and a variable cost that are involved in the operation of an automobile.

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Question 6 6. What type of cost is the base cost that is paid when renting machines?

Question 7 7. Radio Shack is an example of a company doing which of the following?

Question 8 8. Why are all costs associated with long-run production considered to be variable?

Question 9 9. Variable costs may rise sharply in all of the following situations, EXCEPT:

Question 10 10. Caribbean Constructions is planning to expand a complex of resort condos in the Bahama Islands. Which of these is a fixed cost for their project?

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Question 11 11. Why is knowing total cost helpful to a manager?

Question 12 12. What is total cost?

Question 13 13. What is a util?

Question 14 14. According to the law of diminishing marginal returns, at which point is the price for a good the highest?

Question 15 15. What is product costing?

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Question 16 16. What is a cost pool?

Question 17 17. What is the shape of a cost curve?

Question 18 18. What does a product curve demonstrate?

Question 19 19. Which of the following is a variable cost?

Question 20 20. What is the unit cost?

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Question 21 21. Which company attempted to reduce their fixed costs at the River River plant and ended up with massive marginal costs?

Question 22 22. A state government offers tax breaks to companies to build factories in their state. If a company takes up this offer and builds a new factory in this state, what will they be reducing?

Question 23 23. ABC Electronics has a current contract with XYZ Computers to manufacture 100,000 computer chips for them. Which of the following is the best descriptor for this production that ABC is under obligation to fulfill for XYZ?

Question 24 24. What happens to the short-run production curve when a typical coffee shop has 20 employees on one shift, and why does it happen?

Question 25 25. What is a short-run cost?

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Question 26 26. Transitioning from baking to catering is considered which of the following?

Question 27 27. What is an example of a direct materials cost?

Question 28 28. How do process costing systems allocate expenses to products?

Question 29 29. Why does the variable cost curve rise quickly at first?

Question 30 30. Which of these is a variable cost?

Producers & Production in Microeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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