Samuel f.b. morse patented the telegraph automobile audio recorder radio transmitter

Question 1 (Multiple Choice Worth 5 points)

(03.02 MC)

Your friend wants to open a hamburger stand. A necessary labor resource is

[removed] a truck

[removed] ground beef

[removed] a grill

[removed] a chef

Question 2 (Multiple Choice Worth 5 points)

(03.06 MC)

Graph shows gallons of strawberry ice cream along the horizontal axis and gallons of chocolate ice cream along the vertical axis. Five points are plotted on the graph. Point A shows four strawberry and eight chocolate. Point B shows 15 chocolate and two strawberry. Point C shows four chocolate and twelve strawberry. Point D shows twelve chocolate and eight strawberry. Point X shows twelve chocolate and twelve strawberry.

© FLVS 2013

Use this image to answer the following question. The ice cream shop

[removed] wants to produce mostly chocolate ice cream

[removed] wants to produce mostly strawberry ice cream

[removed] would operate inefficiently if it produced 6 gallons of both flavors

[removed] is most efficient when it produces 2 gallons of strawberry ice cream

Question 3 (Multiple Choice Worth 5 points)

(03.05 HC)

Marginal Cost Analysis Chart: ProPhone Blazer
Quantity of Jackets
Price (in whole dollars)
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
Profit (or loss)
0
220
0
0
90
0

1
200
200
200
170
80

2
180
360
160
200
30

3
160
480
120
290
90

4
150
600
120
340
50

5
140
700
100
400
60

6
135
810
90
500
100

7
130
910
100
620
120

The owner of ProPhone has charted the company's marginal revenue and marginal cost for its latest line of smartphones, the Blazer. Use the chart to calculate the company's profit. If ProPhone sells four phones, the company will

[removed] break even

[removed] lose money

[removed] maximize profits

[removed] make some profit

Question 4 (Multiple Choice Worth 5 points)

(03.04 MC)

Why do monopolies and oligopolies benefit producers over consumers?

[removed] Companies control price through demand.

[removed] Competition is driven by factors other than price.

[removed] Demand influences production more when competition is less.

[removed] Few producers can generally control prices.

Question 5 (Multiple Choice Worth 5 points)

(03.03 MC)

Your friend hopes to expand her business to multiple locations. It would be best for her to create a

[removed] limited liability company

[removed] sole proprietorship

[removed] corporation

[removed] partnership

Question 6 (Multiple Choice Worth 5 points)

(03.06 MC)

A university has just hired additional faculty and staff. Who of the following is most likely to earn the highest pay?

[removed] Chemistry professor with a doctoral degree

[removed] Economics graduate student teaching assistant

[removed] Education lecturer with a master's degree

[removed] Classics department office manager with a bachelor's degree

Question 7 (Multiple Choice Worth 5 points)

(03.05 MC)

Quantity of Jackets
Price (in whole dollars)
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
Profit (or loss)
0
20

1
20
20

18

2
19
38

33

3
18
54

43

4
17
68

55

5
16
80

68

6
15
90

83

7
14
98

101

8
13
104

120

Based on this chart, what is the marginal cost, in dollars, to produce two jackets?

[removed] Five

[removed] 15

[removed] 18

[removed] 33

Question 8 (Multiple Choice Worth 5 points)

(03.04 LC)

The greatest goal in advertising is to convince us

[removed] "wants" are unnecessary

[removed] the firm has the best price

[removed] a particular product is a "need"

[removed] the product is the same as other firm's products

Question 9 (Multiple Choice Worth 5 points)

(03.06 HC)

A production possibilities curve. x-axis is labeled Mystery Novels. Y-axis is labeled Sci-Fi Novels. Curve extends from 0, 11 to 11, 0. Point Q plotted at 5, 11. Point R plotted at 6, 10. Point T plotted at 9, 8. Point V plotted at 10, 5.

© FLVS 2013

Mad Hatter Publishing specializes in genre fiction for young adults. A movie company decides to make an adaptation of one of its popular science-fiction novels. Currently, production at Mad Hatter is at point T. To which point or points is production likely to shift?

[removed] Q or R

[removed] R or V

[removed] T or V

[removed] V or Q

Question 10 (Multiple Choice Worth 5 points)

(03.06 MC)

Graph shows gallons of strawberry ice cream along the horizontal axis and gallons of chocolate ice cream along the vertical axis. Five points are plotted on the graph. Point A shows four strawberry and eight chocolate. Point B shows 15 chocolate and two strawberry. Point C shows four chocolate and twelve strawberry. Point D shows twelve chocolate and eight strawberry. Point X shows twelve chocolate and twelve strawberry.

© FLVS 2013

Use this image to answer the following question. The ice cream shop needs 5 pounds of strawberries for every gallon of strawberry ice cream. The shop chose to produce 4 gallons of chocolate ice cream. How many pounds of strawberries should the shop purchase?

[removed] 24

[removed] 30

[removed] 40

[removed] 60

Question 11 (Multiple Choice Worth 5 points)

(03.04 MC)

"Buy our cell phone with built-in calendar and reminder features! This way you will never forget an appointment while on the go." This advertisement targets your

[removed] fears

[removed] rituals

[removed] emotions

[removed] social values

Question 12 (Multiple Choice Worth 5 points)

(03.01 LC)

Samuel F.B. Morse patented the

[removed] telegraph

[removed] automobile

[removed] audio recorder

[removed] radio transmitter

Question 13 (Multiple Choice Worth 5 points)

(03.06 MC)

A company will continue to hire workers until

[removed] there is no more room in the facility

[removed] the government restriction on workforce is reached

[removed] the additional profit is less than the cost of hiring

[removed] there is no more money available for capital investment

Question 14 (Multiple Choice Worth 5 points)

(03.06 MC)

Marco works as a freelance science writer. He wants to improve his productivity. Which of the following steps is he most likely to take?

[removed] Build a website highlighting his expertise and publications

[removed] Take a week off to relax and play video games

[removed] Invest in a better computer and a faster Internet connection

[removed] Take out an advertisement for his services

Question 15 (Multiple Choice Worth 5 points)

(03.02 MC)

Meg and her mother are opening a cupcake shop. They buy an oven, a walk-in cooler, and a decorating table. In terms of factors of production, what are these items?

[removed] Capital

[removed] Entrepreneurship

[removed] Labor

[removed] Land

Question 16 (Multiple Choice Worth 5 points)

(03.06 MC)

Which of the following is the most profitable investment for a game shop earning $2 profit from every game sold?

[removed] Vehicle with $120 daily operating cost, delivering 80 games per day

[removed] Inventory software with $10 daily operating cost, saving 30 games per day from theft

[removed] Game cleaning system with $5 daily operating cost, increasing sales by 15 games per day

[removed] Electronic billboard with $20 daily operating cost, increasing sales by 20 games per day

Question 17 (Multiple Choice Worth 5 points)

(03.03 MC)

Stefan has inherited a large amount of money and decides he wants to start a skateboard shop. He has money to invest up front, but he lacks business expertise. Which of the following would be his best business options, depending on what he is willing to risk?

[removed] Corporation or sole proprietorship

[removed] Limited liability company or corporation

[removed] Partnership or limited liability company

[removed] Sole proprietorship or partnership

Question 18 (Multiple Choice Worth 5 points)

(03.05 MC)

Quantity of Jackets
Price (in whole dollars)
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
Profit (or loss)
0
20

1
20
20

18

2
19
38

33

3
18
54

43

4
17
68

55

5
16
80

68

6
15
90

83

7
14
98

101

8
13
104

120

Based on this chart, what is the marginal revenue, in dollars, at quantity five jackets?

[removed] 12

[removed] 13

[removed] 52

[removed] 64

Question 19 (Multiple Choice Worth 5 points)

(03.04 LC)

A monopoly is a market for a good or service that

[removed] has few competitive firms

[removed] is perfectly competitive

[removed] has one buyer

[removed] has one seller

Question 20 (Multiple Choice Worth 5 points)

(03.06 MC)

Which of the following is the most profitable investment for a candy shop that earns $1 profit per pound of candy?

[removed] Worker at $10 per hour, producing eight pounds of candy per hour

[removed] Worker at $12 per hour, producing 16 pounds of candy per hour

[removed] Machine with $5 per hour operating cost, producing 10 pounds of candy per hour

[removed] Machine with $8 per hour operating cost, producing 14 pounds of candy per hour