If the cost to produce frozen chicken nuggets decreases at the same time as consumer

tastes shift away from frozen chicken nuggets and the shift in demand is greater than
the shift in supply, which of the following is true?

Select one:

A.
Both the equilibrium quantity and price will decrease.

B.
Both the equilibrium quantity and price will increase.

C.
The equilibrium quantity will decrease and the equilibrium price will increase.

D.
The equilibrium price will decrease and the equilibrium quantity will not change.

If Goods X and Y are complements, if the price of Good X decreases, this will cause a
movement ________ the demand curve for Good X and a ________ shift in the demand for
Good Y.

Select one:

A.
up; rightward

B.
up; leftward

C.
down; leftward

D.
down; rightward

Which of the following will cause a movement down the supply curve for frozen chicken
nuggets?

Select one:

A.
an increase in the number of suppliers of frozen chicken nuggets

B.
a decrease in the cost to produce frozen chicken nuggets

C.
a decrease in the expected future price of frozen chicken nuggets

D.
a decrease in the price of frozen chicken nuggets
Clear my choice

If Goods X and Y are substitutes in production, if the price of Good X increases, this will
cause a ________ the supply curve for Good X and a ________ the supply curve for Good Y.

Select one:

A.
movement along; movement along

B.
shift in; movement along

C.
shift in; shift in

D.
movement along; shift in

If Goods X and Y are substitutes in production, if the price of Good X decreases, this will
cause a movement ________ the supply curve for Good X and a ________ shift in the supply
curve for Good Y.

Select one:

A.
down; leftward

B.
up; rightward
C.
down; rightward

D.
up; leftward

A technological advancement in the production of LED light bulbs will result in ________.

Select one:

A.
an upward movement along the supply curve

B.
a downward movement along the supply curve

C.
a leftward shift of the supply curve

D.
a rightward shift of the supply curve
Clear my choice

If the price of ground beef decreases, which of the following will occur?

Select one:

A.
The substitution effect will cause some consumers to switch to other types of meat.

B.
Consumers will experience a decrease in their purchasing power.

C.
The demand curve for ground beef will shift to the left.

D.
There will be a movement down the demand curve for ground beef.
If the number of demanders for electric cars increases at the same time as the number of
suppliers of electric cars increases and the shift in demand is equal to the shift in supply,
which of the following is true?

Select one:

A.
Both the equilibrium quantity and price will decrease.

B.
Both the equilibrium quantity and price will increase.

C.
The equilibrium quantity will increase and the equilibrium price will not change.

D.
The equilibrium price will decrease and the equilibrium quantity will not change.

A small law firm that is NOT registered as a limited liability company is likely to be a
________ or a ________.

Select one:

A.
proprietorship; partnership

B.
corporation; LLC

C.
proprietorship; corporation

D.
partnership; corporation
Clear my choice

Both accounting cost and opportunity costs include explicit and implicit costs.

Select one:
True
False
A cabinet firm paid $5,000 for 10,000 pieces of cabinet hardware. The firm has used
4,000 pieces of hardware and is holding the remaining 6,000 pieces in inventory. The
current market price for the 6,000 pieces of hardware is $2,800. What is the sunk cost of
purchasing the cabinet hardware?

Select one:

A.
$5,000

B.
$2,800

C.
$4,000

D.
$3,000

Profit Using Accounting Costs Profit Using Opportunity Costs

Total Revenue $700,000Total Revenue $700,000
Cost Cost
Nail technicians A Nail technicians A
Owner's Salary B Owner's Time C
Depreciation Allowance D Cost of using building and equipment $25,000
(opportunity cost)

Total Cost Total Cost

Total Profit E Total Profit F
Happy Nails is a locally owned nail salon that is in its first year of business. The nail salon
employs 8 nail technicians that are paid $31,250 each and the owner's is paid $75,000. If
the owner did not own Happy Nails, she would work for a competitor for $85,000. At the
beginning of the year, the building and the salon equipment are worth $100,000 and at
the end of the year, they are worth $85,000. The accountant for Happy Nails uses
straight-line depreciation for the 15-year life of the building and salon equipment. The
table above provides some additional information on revenue and the opportunity cost
of using the building and equipment.

Refer to the table above. The value of E is greater than the value of F.

Select one:
True
False
Total revenue is equal to

Select one:

A.
quantity x profit

B.
price  x quantity

C.
price x cost

D.
price x profit
Clear my choice

________ is an example of an implicit cost.

Select one:

A.
A salary paid to an employee

B.
A firm's electric bill

C.
The cost to transport a firm's goods

D.
The wear and tear on a firm's machinery

If the marginal benefit curve is linear and downward sloping and the marginal cost curve
is linear and upward sloping, a decrease in the marginal cost that causes a downward
shift of the curve will ________ the profit-maximizing number of units undertaken.

Select one:

A.
reduce by exactly half

B.
increase
C.
decrease

D.
not change