Question :
51.Frankownsadog-groomingbusiness.Whichofthefollowingcostswouldbeimplicitcosts?
(i)dogshampoo
(ii)rentonthestorefront
(iii)wagesFrankcouldearnasasubstituteelementary-schoolt : 1261511
51.Frankownsadog-groomingbusiness.Whichofthefollowingcostswouldbeimplicitcosts?
(i)dogshampoo
(ii)rentonthestorefront
(iii)wagesFrankcouldearnasasubstituteelementary-schoolteacher
(iv)interestthatFrank’smoneywasearningbeforehespenthissavingstosetupthedog
groomingbusiness
a.(i)and(ii)only
b.(iv)only
c.(iii)and(iv)only
d.(i),(ii),(iii),and(iv)
52.Implicitcosts
a.donotrequireanoutlayofmoneybythefirm.
b.donotenterintotheeconomist’smeasurementofafirm’sprofit.
c.arealsoknownasvariablecosts.
d.arenotpartofaneconomist’smeasurementofopportunitycost.
53.Whichofthefollowingisanexampleofanimplicitcost?
a.(ii)and(iii)only
b.(i)and(iii)only
c.(i)only
d.(iii)only
54.Theamountofmoneythatawheatfarmercouldhaveearnedifhehadplantedbarleyinsteadofwheatis
a.anexplicitcost.
b.anaccountingcost
c.animplicitcost.
d.forgoneaccountingprofit.
55.Whichofthefollowingisanexampleofanimplicitcost?
a.salariespaidtoownerswhoworkforthefirm
b.interestonmoneyborrowedtofinanceequipmentpurchases
c.cashpaymentsforrawmaterials
d.foregonerentonofficespaceownedandusedbythefirm
56.Foregoneinvestmentopportunitiesareanexampleof
a.anexplicitcost.
b.animplicitcost.
c.revenues.
d.profits.
57.Jacquidecidestoopenherownbusinessandearns$50,000inaccountingprofitthefirstyear.Whendecidingtoopenherownbusiness,sheturneddownthreeseparatejobofferswithannualsalariesof$30,000,$40,000,and$45,000.WhatisJacqui’seconomicprofitfromrunningherownbusiness?
a.$-55,000
b.$-5,000
c.$5,000
d.$20,000
58.Bevisopeningherowncourt-reportingbusiness.Shefinancedthebusinessbywithdrawingmoneyfromherpersonalsavingsaccount.Whensheclosedtheaccount,thebankrepresentativementionedthatshewouldhaveearned$300ininterestnextyear.IfBevhadn’topenedherownbusiness,shewouldhaveearnedasalaryof$25,000.Inherfirstyear,Bev’srevenueswere$30,000.Whichofthefollowingstatementsiscorrect?
a.Bev’stotalexplicitcostsare$25,300.
b.Bev’stotalimplicitcostsare$300.
c.Bev’saccountingprofitsexceedhereconomicprofitsby$300.
d.Bev’seconomicprofitis$4,700.
59.Walterusedtoworkasahighschoolteacherfor$40,000peryearbutquitinordertostarthisownpaintingbusiness.Toinvestinhispaintingbusiness,hewithdrew$20,000fromhissavings,whichpaid3percentinterest,andborrowed$30,000fromhisuncle,whomhepays3percentinterestperyear.LastyearWalterpaid$25,000forsuppliesandhadrevenueof$60,000.WalteraskedTylertheaccountantandGregtheeconomisttocalculatehispaintingbusiness’scosts.
a.Tylersayshiscostsare$25,900,andGregsayshiscostsare$66,500.
b.Tylersayshiscostsare$25,000,andGregsayshiscostsare$65,000.
c.Tylersayshiscostsare$66,500,andGregsayshiscostsare$66,500.
d.Tylersayshiscostsare$75,000,andGregsayshiscostsare$41,500.
60.Walterusedtoworkasahighschoolteacherfor$40,000peryearbutquitinordertostarthisownpaintingbusiness.Toinvestinhispaintingbusiness,hewithdrew$20,000fromhissavings,whichpaid3percentinterest,andborrowed$30,000fromhisuncle,whomhepays3percentinterestperyear.LastyearWalterpaid$25,000forsuppliesandhadrevenueof$60,000.WalteraskedTylertheaccountantandGregtheeconomisttocalculatehispaintingbusiness’sprofit.
a.Tylersayshisprofitis$25,900,andGregsayshisprofitis$66,500.
b.Tylersayshisprofitis$35,000,andGregsayshelost$5,900.
c.Tylersayshisprofitis$34,100,andGregsayshelost$6,500.
d.Tylersayshisprofitis$34,100,andGregsayshisprofitis$34,100.
