Discuss on resource scarcity

Question 1

The economic concept of “opportunity cost” is most closely associated with which of the following management considerations?

market structure

resource scarcity

product demand

technology

2 points Save Answer

Question 2

Scarcity is a condition that exists when

there is a fixed supply of resources relative to the demand for the product.

there is a large demand for a product.

resources are not able to meet the entire demand for a product.

All of these

2 points Save Answer

Question 3

A critical element of entrepreneurship (as opposed to managerial skills) is

leadership skills.

risk taking.

technology.

political skills.

2 points Save Answer

Question 4

A large corporation’s profit objective may not be profit or wealth maximization, because

stockholders have little power in corporate decision making.

management is more interested in maximizing its own income.

managers are overly concerned with their own survival and may not take all prudent risks.

All of these

2 points Save Answer

Question 5

Unlike an accountant, an economist measures costs on a(n) ________ basis.

explicit

replacement

historical

conservative

2 points Save Answer

Question 6

A firm’s “normal profit” is best characterized by the

average of a firm’s profits over the past five years.

amount of profit necessary to keep the price of a firm’s stock from changing.

amount of profit a firm could earn in its next best alternative activity.

the average amount of profit earned in the firm’s industry.

2 points Save Answer

Question 7

If the price of a substitute increases, which of the following is most likely to happen in the market for the product under consideration in the short run?

Supply will increase.

Firms will leave the market.

Firms will devote more variable inputs in the production of this good.

Firms will devote less variable inputs in the production of this good.

2 points Save Answer

Question 8

Which of the following best applies to the distinction between the “long run” and the “short run”?

The short run is a period of approximately 1-6 months while the long run is any time frame which is longer.

In the short run, only new firms may enter, while in the long-run firms may either enter or exit the market.

The rationing function of price is a short-run phenomenon whereas the guiding function is a long-run phenomenon.

All of these statements are correct.

2 points Save Answer

Question 9

A market is in equilibrium when

supply is equal to demand.

the price is adjusting upward.

the quantity supplied is equal to the quantity demanded.

tastes and preference remain constant.

2 points Save Answer

Question 10

Question 1

The economic concept of “opportunity cost” is most closely associated with which of the following management considerations?

market structure

resource scarcity

product demand

technology

2 points Save Answer

Question 2

Scarcity is a condition that exists when

there is a fixed supply of resources relative to the demand for the product.

there is a large demand for a product.

resources are not able to meet the entire demand for a product.

All of these

2 points Save Answer

Question 3

A critical element of entrepreneurship (as opposed to managerial skills) is

leadership skills.

risk taking.

technology.

political skills.

2 points Save Answer

Question 4

A large corporation’s profit objective may not be profit or wealth maximization, because

stockholders have little power in corporate decision making.

management is more interested in maximizing its own income.

managers are overly concerned with their own survival and may not take all prudent risks.

All of these

2 points Save Answer

Question 5

Unlike an accountant, an economist measures costs on a(n) ________ basis.

explicit

replacement

historical

conservative

2 points Save Answer

Question 6

A firm’s “normal profit” is best characterized by the

average of a firm’s profits over the past five years.

amount of profit necessary to keep the price of a firm’s stock from changing.

amount of profit a firm could earn in its next best alternative activity.

the average amount of profit earned in the firm’s industry.

2 points Save Answer

Question 7

If the price of a substitute increases, which of the following is most likely to happen in the market for the product under consideration in the short run?

Supply will increase.

Firms will leave the market.

Firms will devote more variable inputs in the production of this good.

Firms will devote less variable inputs in the production of this good.

2 points Save Answer

Question 8

Which of the following best applies to the distinction between the “long run” and the “short run”?

The short run is a period of approximately 1-6 months while the long run is any time frame which is longer.

In the short run, only new firms may enter, while in the long-run firms may either enter or exit the market.

The rationing function of price is a short-run phenomenon whereas the guiding function is a long-run phenomenon.

All of these statements are correct.

2 points Save Answer

Question 9

A market is in equilibrium when

supply is equal to demand.

the price is adjusting upward.

the quantity supplied is equal to the quantity demanded.

tastes and preference remain constant.

2 points Save Answer

Question 10