Terms/Examples
Which expense is most likely a fixed cost?
a. wages for workers
b. monthly shipping charges
c. rent for a company's warehouse
d. raw materials used in production
rent for a company's warehouse
An investment in a college education is an investment in
human capital
The MAIN purpose of using division of labor is to
improve productivity
What is most likely to improve a company's overall productivity?
advances in its technology
Application of science to commerce and industry is
Technology
Economists generally describe productivity as
the increase in goods produced from input OR
the amount of output produced per worker per hour
In economic terms, worker specialization is likely to lead to
greater productivity
An economist would probably argue that the situation described below would most likely result in
* Country A has over 500,000 workers providing labor for products that are in high demand worldwide
* Country A makes investments in technology and physical capital
* Workers in Country A increase their productivity by over 25%
a. lower rates of inflation in Country A
b. lower levels of consumer spending in Country A
c. higher rates of unemployment in Country A
d. higher standards of living for people in Country A
*** SURPRISE TODAY'S TRIPLE***
higher standards of living for people in Country A
Learning new skills is an investment in?
human capital
Creation of goods and services is called
Production
An economist would most likely define economic growth as
a. an increase in profits from goods and services in the short run
b. an improved standard of living for a nation's govenment officials
c. a higher level of employment in manufacturing and agriculture
d. a sustained increase in the nation's production of goods and services
a sustained increase in the nation's production of goods and services
A country's gross domestic product (GDP) is a measurement of the
total value of final goods and services produced per year within the nation's borders
A nation's productivity is directly affected by
a. the education of its labor force
b. the efficiency of its machinery
c. the effectiveness of its management
d. all of the above
d. all of the above
Which of the following statements about investing in human capital is most likely true?
a. It can increase productivity, because it increases a worker's abilities on the job.
b. It can raise future standards of living, because workers will be more productive.
c. It can reduce the cost of doing business, because workers will be more productive.
d. All of the above.
All of the above.
The Point reached at which additional inputs result in lower additional output is
Diminishing Returns
In the scenario below, raw materials represent one of Company A's
* Company A operates a factory that produces glass dinnerware
* The factory produces all of the raw materials needed to make dinnerware.
* The factory rents a warehouse outside city limits.
A. Fixed Costs
B. Variable Costs
C. Taxable Sales
D. None of the above
** DAILY DOUBLE **
Variable Costs
An economist would probably argue that an increase in productivity affects a nation's standard of living because
a. Workers who are more productive are likely to earn higher wages.
b. Companies with productive workers are likely to earn lower profits.
c. The productive output of a country determines its inflation rate.
d. The productive output of a country determines income tax rates.
a. Workers who are more productive are likely to earn higher wages.
What is the best way to increase the total output of goods and services produced in the United States?
a. Work harder
b. Work more hours
c. Increase productivity
d. Increase government regulations
c. Increase productivity
Which of the results below most likely reflect an increase in productivity?
I. Producing more goods and services with the same amount of resources.
II. Producing the same amount of goods and services with fewer resources.
III. Producting more goods and services with more resources.
** DAILY DOUBLE **
I and II
I. Producing more goods and services with the same amount of resources. AND
II. Producing the same amount of goods and services with fewer resources.
Breaking down large tasks into a series of small ones is called (Think of tasks humans do.)
Division of Labor
A measure of the quantity of goods and services available.
Standard of living
A nation's standard of living will rise if
a. GDP and population increase at the same rate.
b. real GDP per capita increases.
c. population increases more than GDP
d. production and consumption decrease
b. real GDP per capita increases
Economies of scale are achieved by
a. selling fewer units at a higher price
b. low capital investment
c. capital investments to increase plant size and reduce costs per unit
d. all of the above
c. capital investments to increase plant size and reduce costs per unit
If a business wants to maximize profits, it attempts to produce a quantity of goods which creates
a. the lowest total costs
b. the highest possible revenues
c. the most equality between costs and revenues
d. the greatest positive difference between revenues and costs
d. the greatest positive difference between revenues and costs
*** SAME AS the greatest positive difference between costs andrevenues
Reduced unit costs achieved in large factories
Economies of Scale