If you buy an insurance policy with a high deductible and co-payments, you would end up paying
a. A higher premium
b. A lower premium
c. The premium of a low risk individual
d. Both B&C
QUESTION 2In the short-run:
a. All costs are variable
b. Some costs are fixed and some costs are variable
c. There are no fixed inputs
d. The firm is not constrained to vary output
QUESTION 3If Chinese consumers want to buy US goods, they will
a. Buy Yuan and sell US Dollars
b. Sell Yuan and buy US Dollars
c. Neither buy nor sell Yuan
d. Neither buy nor sell dollars
QUESTION 4If you buy an insurance policy with a low deductible and no co-payments, you would end up paying
a. A higher premium
b. A lower premium
c. The premium of a low risk individual
d. Both B&C
QUESTION 5Which of the following statements is true?
a. Economic profits ignore implicit costs and revenues.
b. Although implicit costs do not show up in accounting profits, they nevertheless affect managerial decisions.
c. Although explicit costs do not show up in accounting profits, they nevertheless affect managerial decisions.
d. Economists consider sunk costs in their decision making
QUESTION 6A Swiss consumer wants to buy an American laptop. The exchange rate is 1USD=0.89CHF (Swiss Francs). The laptop costs 800 . How much would the laptop cost him in Swiss Francs?
a. 1200 Francs
b. 1160Francs
c. 890Francs
d. 712 Francs
QUESTION 7To signal to your insurance company that you are a low risk individual, to secure a lower premium, you should
a. Accept an insurance policy with a high deductible
b. Accept an insurance policy with a low deductible
c. Accept an insurance policy with a co-payment
d. Both A&C
QUESTION 8A manager invests 400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from 2 to 1.85 . After a year, the manager has an opportunity to outsource production to another company at a cost per unity of 1.75 . If you are the manager, you
a. should consider the 400,00 . as sunk cost and therefore it should not be relevant to the decision.
b. should base your decision upon economic profit and not accounting profit
c. should avoid the fixed-cost fallacy
d. all the above
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