Question 1

To produce a unit of output,Alphaworks uses 10 hours of labour and 5 kilograms of material.Betaworks uses 5 hours of labour and 10 kilograms of material,and Gammaworks uses 10 hours of labour and 10 kilograms of material.If labour costs $10 per hour and material costs $5 per kilogram,which firm is economically efficient?
A)Alphaworks only
B)Betaworks only
C)Gammaworks only
D)Alphaworks and Betaworks
E)Alphaworks and Gammaworks

Accepted Answer

To determine which firm is economically efficient, we need to compare the cost of producing one unit of output for each firm.

For Alphaworks:
Cost of labour = 10 hours * $10 per hour = $100
Cost of materials = 5 kilograms * $5 per kilogram = $25
Total cost = $100 + $25 = $125

For Betaworks:
Cost of labour = 5 hours * $10 per hour = $50
Cost of materials = 10 kilograms * $5 per kilogram = $50
Total cost = $50 + $50 = $100

For Gammaworks:
Cost of labour = 10 hours * $10 per hour = $100
Cost of materials = 10 kilograms * $5 per kilogram = $50
Total cost = $100 + $50 = $150

Therefore, Betaworks is the most economically efficient firm as it has the lowest cost of producing one unit of output.

Question 2

A firm that is technologically efficient
A)always makes an economic profit.
B)must be economically efficient, but a firm that is economically efficient is not always technologically efficient.
C)must be economically efficient, and a firm that is economically efficient must always be technologically efficient.
D)is not always economically efficient, and a firm that is economically efficient is not always technologically efficient.
E)is not always economically efficient, but a firm that is economically efficient must always be technologically efficient.

Accepted Answer

The answer of A firm that is technologically efficient
A)always makes...

Question 3

Use the table below to answer the following questions.
Table 10.2.2
Three methods of making one medical hologram
 
-Refer to Table 10.2.2.If the price of labour is $20 per unit and the price of capital is $10 per unit,which method is economically efficient?
A)1 only
B)2 only
C)3 only
D)2 and 3 only
E)1 and 3 only

Accepted Answer

The answer of Use the table below to answer the...

Question 4

A firm that uses the latest technology ________ technologically efficient because ________.
A)is not necessarily;the firm might not use the least amount of inputs to produce a given output
B)is not necessarily;new technology is more expensive than old technology
C)is;efficiency is about costs rather than when the technology was developed
D)is;new technology isn't developed unless it is efficient
E)is;most consumers want access to the latest technology

Accepted Answer

The answer of A firm that uses the latest technology...

Question 5

Some firms use large amounts of capital and small amounts of labour,while others use small amounts of capital and large amounts of labour to
A)use surpluses of labour and capital and eliminate unemployment of these resources.
B)use the best available technology.
C)use the resources that are most readily available.
D)maximize profit.
E)maximize production.

Accepted Answer

Firms aim to maximize profit, and using the optimal combination of capital and labor is essential in achieving this goal. By using large amounts of capital and small amounts of labor or vice versa, firms can minimize costs and increase efficiency, ultimately leading to higher profits.

Question 6

Which one of the following statements is true?
A)All technologically efficient methods are also economically efficient.
B)All economically efficient methods are also technologically efficient.
C)Technological efficiency changes with changes in relative input prices.
D)Technologically efficient firms will be more likely to survive than economically efficient firms.
E)none of the above

Accepted Answer

Economically efficient methods are those that minimize cost for a given level of output, which implies they are also technologically efficient, as they use the least amount of inputs necessary.

Question 7

Use the information below to answer the following questions.
Fact 10.2.1
Consider the following three methods of preparing your tax return.Method A uses a personal computer (cost equal to $1,000)and 1 hour of your time.Method B uses a calculator (cost equal to $30)and 12 hours of your time.Method C uses pen and paper (cost equal to $1)and 2 days (16 hours)of your time.
-Consider Fact 10.2.1.Which production method is technologically inefficient?
A)A
B)B
C)C
D)all of the above
E)none of the above

Accepted Answer

The answer of Use the information below to answer the...

Question 8

Emma owns a firm that produces umbrellas.Currently,Emma produces 2,500 umbrellas a day.Emma cannot produce more umbrellas in a day unless she purchases another machine or else hires more workers.Emma is ________ efficient.
A)economically
B)economically and technologically
C)technologically
D)not
E)capital and labour

Accepted Answer

Emma is only technologically efficient since she is currently producing the maximum amount of umbrellas with her existing resources. However, there may be room for improvement in terms of economic efficiency if she could find ways to produce the 2,500 umbrellas at a lower cost. The other options (A, B, D, and E) are not accurate for describing Emma's efficiency in this situation.

Question 9

In a partnership,each partner is legally liable for
A)all the debts of the partnership.
B)the fraction of the debts corresponding to the fraction of ownership.
C)50 percent of the debt.
D)all debts of the partnership limited by the personal wealth of the partner.
E)an amount of debt limited to the amount of the partner's investment in the partnership.

Accepted Answer

The answer of In a partnership,each partner is legally liable...

Question 10

Which one of the following statements is not true?
A)A production process is technologically efficient only if it is producing a given output at the lowest possible cost.
B)If a process is economically efficient, it must be technologically efficient as well.
C)Economic efficiency depends on the relative price of inputs, while technological efficiency does not.
D)Economically efficient firms will be more likely to survive than economically inefficient firms.
E)Technologically efficient firms are more likely to survive than technologically inefficient firms.

Accepted Answer

The answer of Which one of the following statements is...

Question 11

Use the table below to answer the following questions.
Table 10.2.1
 
-Refer to Table 10.2.1.If the price of labour is $10 per unit and the price of capital is $20 per unit,which method is economically efficient?
A)1 only
B)2 only
C)3 only
D)all of the above
E)1 and 3 only

Accepted Answer

The answer of Use the table below to answer the...

Question 12

Use the table below to answer the following questions.
Table 10.2.2
Three methods of making one medical hologram
 
-In Table 10.2.2,which method of making a medical hologram is technologically efficient?
A)1 only
B)2 only
C)3 only
D)all of the above
E)1 and 3 only

Accepted Answer

The answer of Use the table below to answer the...

Question 13

The profits of a sole proprietorship are
A)taxed twice.
B)subject to a corporate tax.
C)not taxed.
D)exempt from taxation.
E)treated as the owner's income.

Accepted Answer

The profits of a sole proprietorship are treated as the owner's income, and therefore are taxed accordingly on the owner's personal income tax return.

Question 14

Use the table below to answer the following questions.
Table 10.2.1
 
-Refer to Table 10.2.1,which shows three methods for making photon torpedoes.Which method is technologically efficient?
A)1 only
B)2 only
C)3 only
D)all of the methods
E)1 and 3 only

Accepted Answer

The answer of Use the table below to answer the...

Question 15

Most establishments in Canada
A)employ between 5 and 99 people.
B)employ more than 100 people.
C)employ fewer than 5 people.
D)employ more than 500 people.
E)are partnerships.

Accepted Answer

The answer of Most establishments in Canada
A)employ between 5 and...

Question 16

In the relationship between the owner of a bakery and the baker,the owner is
A)an agent, as is the baker.
B)an agent and the baker is a principal.
C)a principal and the baker is an agent.
D)a principal, as is the baker.
E)neither a principal nor an agent, but the baker is an agent.

Accepted Answer

The owner of the bakery is the principal because they own the business and have control over the operations. The baker is an agent because they are employed by the owner and carry out tasks on behalf of the owner. Agents act on behalf of principals, which makes the owner the principal and the baker the agent.

Question 17

The legal responsibility for debts incurred by a sole proprietorship falls upon
A)the shareholders.
B)the partners of the sole proprietorship.
C)the owner.
D)the creditors.
E)the managers.

Accepted Answer

The owner of a sole proprietorship has unlimited personal liability for the debts of the business. This means that they are personally responsible for any debts incurred by the business and may have to use personal assets to pay off those debts if the business is unable to do so.

Question 18

A firm with a single owner who has unlimited liability is
A)a corporation.
B)a sole proprietorship.
C)a limited partnership.
D)an unlimited partnership.
E)a cooperative.

Accepted Answer

A sole proprietorship is a business owned by one individual who is personally and fully responsible for all its obligations. This means that the owner has unlimited liability, which means that they are personally responsible for all debts and losses incurred by the business.

Question 19

Typical examples of a partnership would include which one of the following?
A)a law firm
B)a corner drugstore
C)an automobile manufacturer
D)a bank
E)a freelance writer

Accepted Answer

A law firm is a typical example of a partnership as it is usually owned and operated by a group of lawyers who share profits and manage the business together.

Question 20

Use the information below to answer the following questions.
Fact 10.2.1
Consider the following three methods of preparing your tax return.Method A uses a personal computer (cost equal to $1,000)and 1 hour of your time.Method B uses a calculator (cost equal to $30)and 12 hours of your time.Method C uses pen and paper (cost equal to $1)and 2 days (16 hours)of your time.
-Consider Fact 10.2.1.Choose the best statement.
A)When your wage rate is $5 per hour, the economically efficient method is method C.
B)When your wage rate is $50 per hour, the economically efficient method is method B.
C)When your wage rate is $500 per hour, the economically efficient method is method A.
D)all of the above
E)B and C only

Accepted Answer

The answer of Use the information below to answer the...

Quiz 10: Organizing Production

A firm that is technologically efficient

Use the table below to answer the following questions. Table 10.2.2 Three methods of making one medical hologram -Refer to Table 10.2.2.If the price of labour is $20 per unit and the price of capital is $10 per unit,which method is economically efficient?

A firm that uses the latest technology technologically efficient because .

Some firms use large amounts of capital and small amounts of labour,while others use small amounts of capital and large amounts of labour to

Which one of the following statements is true?

Emma owns a firm that produces umbrellas.Currently,Emma produces 2,500 umbrellas a day.Emma cannot produce more umbrellas in a day unless she purchases another machine or else hires more workers.Emma is ________ efficient.

In a partnership,each partner is legally liable for

Which one of the following statements is not true?

Use the table below to answer the following questions. Table 10.2.1 -Refer to Table 10.2.1.If the price of labour is $10 per unit and the price of capital is $20 per unit,which method is economically efficient?

Use the table below to answer the following questions. Table 10.2.2 Three methods of making one medical hologram -In Table 10.2.2,which method of making a medical hologram is technologically efficient?

The profits of a sole proprietorship are

Use the table below to answer the following questions. Table 10.2.1 -Refer to Table 10.2.1,which shows three methods for making photon torpedoes.Which method is technologically efficient?

Most establishments in Canada

In the relationship between the owner of a bakery and the baker,the owner is

The legal responsibility for debts incurred by a sole proprietorship falls upon

A firm with a single owner who has unlimited liability is

Typical examples of a partnership would include which one of the following?