ECON 1002 Microeconomics Unit 1 Milestone Click below link for Answer https://www.sobtell.com/q/tutorial/default/206917-econ-1002-microeconomics-unit-1milestone https://www.sobtell.com/q/tutorial/default/206917-econ-1002-microeconomics-unit-1milestone 1 When Isabella and Sam chose to put up an affordable, maintenance-free plastic fence in their yard instead of the wrought-iron fence they preferred but could not afford on their budget, they demonstrated __________.
profit maximization
consumer optimization
labor/leisure trade-off
consumer surplus 2 Which of the following is not considered a factor of production?
Interest earned on an investment
The property that a factory is built on
The employees for a gas station
A printer to make copies for a company 3 The rational consumer will seek to do which of the following?
Consume to the point where utility is the highest while also using the fewest amount of resources
Recognize that opportunity costs do not exist when resources are fully employed
Use infinite resources to maximize consumption
Increase consumption at zero opportunity cost. 4 Joe paid $5,000 for a used car, but he was willing to pay as much as $10,000. Which economic concept below corresponds to the example above?
Ceteris paribus
Consumer surplus
Producer surplus
Deadweight loss 5 Consumer surplus exists in which of the following situations?
Craig is happy to purchase three DVDs at $15 each.
Sam decides not to purchase a new bicycle until the price falls by $10.
Sarah is willing to pay the $60 ticket price for an upcoming concert, but is happy to buy a ticket from her roommate for $45.
The price of movie tickets falls and Ralph takes his entire family to the movies. 6 Which of the following would a student of macroeconomics NOT study?
The percentage of a nation's labor force that is employed
How governments can act to alleviate a recession
How the price of apples affects the market for oranges
Changes in the overall price level in an economy over time 7 When the small town where Grand Vacations was located experienced an increase in its unemployment rate, the travel agency, whose prices remained constant, saw a decline in the number of customers seeking its services. Which of the economic principles below is being demonstrated in this example?
Shift in supply
Movement along the supply curve
Shift in demand
Movement along the demand curve 8 Determine which of the following is an example of opportunity cost.
How many times will I be able to wear this shirt before it falls apart or goes out of style?
If I take a second job, I will have more money, but less time to spend with my family.
With my current salary, I can only afford to spend $500/month on food.
We have a week of vacation. Let's go on a Mexican cruise. 9 Which choice below is a factor in the process of resource allocation for consumers?
Capital
Land
Time
Short-run constraints 10 Which of the following defines cost minimization?
A firm’s procedure for determining supply and cost that yields the greatest gain
The sacrifice made by choosing one value or opportunity over another
A firm’s output strategy that incurs the least amount of expenditure
The amount of utility gained by a firm as a result of producing an additional unit of a particular good 11 Which of the concepts below is a characteristic of a Veblen good?
A good that offers better quality and features that is consumed when income rises.
An increase in price of the good causes a decrease in quantity demanded.
As income increases, demand for less expensive goods decreases.
As price of the good increases, demand for it increases to establish prestige. 12 Which one of the following examples would cause a movement along the demand curve?
The price of a service remains constant, but changes in preferences affect demand.
The price of a service remains constant, but a change of price in related goods affects demand.
The price of a service remains constant, but a change in income affects demand.
The price of a product decreases, therefore the quantity demanded increases. 13 When Joe went back to college to finish his degree in Economics, he cut back from full-time to part-time work at his firm. During this time, the lease on his SUV ran out and he leased a smaller compact car as a result. The smaller compact car is an example of which type of good?
Inferior
Giffen
Veblen
Normal 14 When examining how price affects either the supply or demand curve, economists apply the concept of ceteris paribus.
This most often translates into which of the following?
Examining each of the factors of production before making a decision
Including all models of economic behavior when making a decision
Holding other factors constant and only examining effect of price on supply and demand
Taking all factors affecting demand into consideration 15 Which of the following is characteristic of macroeconomics?
A consumer's reaction to an increased taxation on cigarettes
Factors that help determine menu prices at a local restaurant
A study analyzing a nation’s unemployment rate
A consumer's reaction to changes in the price of gasoline 16
Which of the following is NOT an example of a shift in demand or supply?
As more books become available in electronic form, demand for paperback books decreases.
A fertilizer price reduction of $10 per bag causes farmers to buy more.
Technological advances increase the production of a particular product, causing a change in supply.
Around the winter holidays, demand increases for a particular children’s toy. 17 Identify which statement is a characteristic of long-run for a firm.
Time period with the least control over constraints
Time period when constraints are most likely to be variable
Time period of determining quantity and cost that yields the greatest profit
Time period with at least one fixed element 18 Which choice below is NOT an example of an intermediate good?
Orange juice sold at a grocery store
Juice that is used in a mixed drink sold at a bar
Vegetables in a salad sold at a restaurant
Cloth used to make clothing sold at a mall 19 A firm that produces and distributes baked goods decides to produce more units of their frozen ice cream cakes once they experience an increase in demand for the cakes. Assuming it is a rational firm, choose the statement from below that is true.
As long as the marginal revenue exceeds the marginal cost, the firm will continue to produce the cakes.
As long as the marginal cost exceeds marginal revenue, the firm will continue to produce the cakes.
If the firm decides to lower the price of the cakes, the quantity demanded will decrease.
The firm will earn a higher incremental profit for each additional cake that it produces. 20 Josh is a hockey player on his university's team. He practices four times a week with his team and sometimes attends Friday night open skate with his friends. If Josh decides to attend the Friday night skate, the cost is $5.
Which of the following is economically true regarding Josh's decision to join his friends on Friday night?
Since Josh already skates four times a week with his hockey team, he will never choose to skate a fifth time that week.
Josh will only attend Friday night skate if there is no charge, a fifth time skating will not benefit him at all.
If Josh decides to join his friends, he must feel that he gains at least $5 in fun by attending a fifth weekly session on the ice.
Josh should never attend Friday night open skate--he could get hurt and jeopardize his hockey career. 1 The rational consumer will seek to do which of the following?
Use infinite resources to maximize consumption
Consume to the point where utility is the highest while also using the fewest amount of resources
Increase consumption at zero opportunity cost.
Recognize that opportunity costs do not exist when resources are fully employed 2 Which one of the following examples would cause a movement along the demand curve?
The price of a service remains constant, but changes in preferences affect demand.
The price of a product decreases, therefore the quantity demanded increases.
The price of a service remains constant, but a change of price in related goods affects demand.
The price of a service remains constant, but a change in income affects demand. 3 Which of the following would cause the supply curve to shift to the right?
The price of lead increases; as a result there are fewer pencils produced.
The price of wheat decreases, so more bread is produced.
The price of cotton increases, so farmers grow more cotton.
The price of apples falls, so consumers purchase more apples. 4 When Joe went back to college to finish his degree in Economics, he cut back from full-time to part-time work at his firm. During this time, the lease on his SUV ran out and he leased a smaller compact car as a result. The smaller compact car is an example of which type of good?
Normal
Veblen
Inferior
Giffen 5 Which of the following would a student of macroeconomics NOT study?
The percentage of a nation's labor force that is employed
Changes in the overall price level in an economy over time
How governments can act to alleviate a recession
How the price of apples affects the market for oranges 6 Determine which of the following is an example of opportunity cost.
If I take a second job, I will have more money, but less time to spend with my family.
We have a week of vacation. Let's go on a Mexican cruise.
With my current salary, I can only afford to spend $500/month on food.
How many times will I be able to wear this shirt before it falls apart or goes out of style? 7 Josh is a hockey player on his university's team. He practices four times a week with his team and sometimes attends Friday night open skate with his friends. If Josh decides to attend the Friday night skate, the cost is $5. Which of the following is economically true regarding Josh's decision to join his friends on Friday night?
Since Josh already skates four times a week with his hockey team, he will never choose to skate a fifth time that week.
If Josh decides to join his friends, he must feel that he gains at least $5 in fun by attending a fifth weekly session on the ice.
Josh will only attend Friday night skate if there is no charge, a fifth time skating will not benefit him at all.
Josh should never attend Friday night open skate--he could get hurt and jeopardize his hockey career.
8 Which of the following is NOT an example of the labor-leisure tradeoff?
A firm decides to layoff workers in order to meet budget.
Sam skips dinner with friends in order to complete a project for school.
Debbie declines to accept overtime work and pay in order to join her family at the beach for a long weekend.
A CEO decides to have a company retreat over a long weekend, figuring the improvement to morale will offset the cost to the firm. 9 When Isabella and Sam chose to put up an affordable, maintenance-free plastic fence in their yard instead of the wrought-iron fence they preferred but could not afford on their budget, they demonstrated __________.
profit maximization
labor/leisure trade-off
consumer surplus
consumer optimization 10 Due to high unemployment, people travel less, which affects the markets for things like hotel rooms and gasoline.
Which economic concept corresponds to this scenario?
Movement up the demand curve
Shift in supply
Movement down the demand curve
Shift in demand 11 A firm acts as a rational decision maker when its leaders decide to do which of the following?
Using all of its resources in order to maximize production, regardless of profit
Cut hours and workers in order to minimize costs
Solely using labor in a production process, rather than a combination of labor and capital
Entice investors by promising lower than average returns on investment 12 Joe paid $5,000 for a used car, but he was willing to pay as much as $10,000. Which economic concept below corresponds to the example above?
Ceteris paribus
Deadweight loss
Producer surplus
Consumer surplus 13 Which answer choice below is NOT an example of microeconomics?
Analysis of the influence of changes in healthcare on a small business
A study of how one's salary level influences spending on leisure items
A study of whether or not the trade embargo against Iran has been successful
An analysis of how a change in one's salary affects individual shopping habits 14 Which of the following combinations contains both an intermediate good and a final good?
Tires and bicycles
Steak and chicken
Architect and new building
Peanut butter and jelly 15 Which of the following is an example of a constraint?
Harbor Sweets will produce to the point where marginal revenue is equal to marginal cost.
Sarah decides not to purchase an additional pair of Ugg boots because she already has two pairs at home.
A SouthCoast Clothing decides that five machines and 15 workers is the most efficient in production.
Peter's Place can serve 300 people in its banquet room, and often has to turn away large parties. 16 Which of the following is not considered a factor of production?
Interest earned on an investment
The employees for a gas station
The property that a factory is built on
A printer to make copies for a company 17 When a firm incurs an additional cost to produce one more unit, this is known as which of the following?
Fixed cost
Per-unit profit
Marginal cost
Marginal revenue 18 A real estate agency’s policy is to start all sales commission negotiations at 6%. However, the agency is willing to accept sales commissions as low as 5%. The scenario above is an example of which principle?
Ceteris paribus
Producer surplus
Consumer surplus
Deadweight loss 19 Which of the following is an example of an inferior good?
A famous brand of leather good produces a handbag that costs as much as a used car. Although it is far from cheap, it is one of the brand's most popular items.
Very poor people in China consume a great deal of rice. When the price of rice rises, consumption of it may even rise.
Chris just graduated from college and sometimes eats ramen noodles when his finances get tight. After he gets his paycheck, he purchases less ramen noodles as he can afford healthier food.
Every once in a while, Nelly treats herself to a manicure and pedicure with a massage. 20 When examining how price affects either the supply or demand curve, economists apply the concept of ceteris paribus.
This most often translates into which of the following?
Holding other factors constant and only examining effect of price on supply and demand
Including all models of economic behavior when making a decision
Examining each of the factors of production before making a decision
Taking all factors affecting demand into consideration 1 A store devotes more space to bicycles so it now has less space for books. This is an example of what decision-making relationship for the rational firm?
Profit maximization
Cost minimization
Infinite resources
Opportunity cost 2 Determine which of the following descriptions is true regarding the rational consumer.
Makes choices that exhibit decreasing utility with the ability to increase consumption
Wants to maximize utility
Has unlimited resources to consider in making decisions
Makes decisions based on an unlimited income 3 Leah has two options this Friday evening. She can either babysit for her professor's kids and earn $50 for the evening, or she can join some friends for dinner and a movie. The movie will cost $25 for ticket and concessions and dinner usually runs around $20. Her roommate has a coupon for 50% off dinner at their favorite restaurant and is trying to convince Leah to come with them rather than babysitting. Which of the following is Leah's opportunity cost if she decides to go with her friends?
The $10 she will save using the 50% off coupon for dinner
The $25 she will spend on movie ticket and concessions
The $50 she would earn from babysitting
The difference between what she would earn from babysitting and what she would spend at dinner and the movies 4 Andrea cannot spend all of her money on bananas. She has to purchase other groceries and pay her bills. Which economic term corresponds to the idea that Andrea must budget how she spends her limited income?
Marginal cost
Consumer optimization
Constraint
Marginal benefit 5 Bob opens a new diner and has to make many decisions about the resources he is going to employ.
Which of the following combinations is NOT correct?
The wait staff is an example of labor.
The restaurant building is an example of land.
A brick oven is an example of capital.
A computer ordering system for staff is an example of technology. 6 Which of the following is true about the field of economics?
Economics is commonly broken into Labor Economics and Consumer Economics
Economics as a field of study was introduced during the Industrial Revolution and has not changed over time
Economics can correctly predict when a recession is coming and how long it will last
Economics is a social science that intersects with other fields of study
7 When Isabella and Sam chose to put up an affordable, maintenance-free plastic fence in their yard instead of the wrought-iron fence they preferred but could not afford on their budget, they demonstrated __________.
consumer optimization
profit maximization
labor/leisure trade-off
consumer surplus 8 A real estate agency’s policy is to start all sales commission negotiations at 6%. However, the agency is willing to accept sales commissions as low as 5%. The scenario above is an example of which principle?
Ceteris paribus
Deadweight loss
Producer surplus
Consumer surplus 9 Which of the following is an intermediate good?
pizza sold to a customer in a restaurant
Flour used to bake bread in a bakery
A textbook used by a teacher in a classroom
A tractor used by a farmer 10 A local supermarket was forced to hold a sale on beef when they received an extra shipment of this perishable good. Over the course of the weekend, the store sold twice as many packages of ground beef as they normally do.
This is an example of which economic principle?
Movement along the demand curve
Shift in demand
Movement along the supply curve
Shift in both supply and demand 11
Which of the following is NOT an example of a shift in demand or supply?
Technological advances increase the production of a particular product, causing a change in supply.
A fertilizer price reduction of $10 per bag causes farmers to buy more.
Around the winter holidays, demand increases for a particular children’s toy.
As more books become available in electronic form, demand for paperback books decreases. 12 When examining how price affects either the supply or demand curve, economists apply the concept of ceteris paribus.
This most often translates into which of the following?
Examining each of the factors of production before making a decision
Taking all factors affecting demand into consideration
Including all models of economic behavior when making a decision
Holding other factors constant and only examining effect of price on supply and demand 13 Which choice below is a factor in the process of resource allocation for consumers?
Time
Land
Capital
Short-run constraints 14 Identify which statement is a characteristic of long-run for a firm.
Time period when constraints are most likely to be variable
Time period with the least control over constraints
Time period of determining quantity and cost that yields the greatest profit
Time period with at least one fixed element 15
What is the study of the behavior of consumers and businesses holistically across an economy?
Social science
Civics
Microeconomics
Macroeconomics 16 During the Great Recession, many investors purchased gold and other precious metals, thinking they would be reliable forms of investment.
If we looked at this phenomenon on a graph, we would see which of the following?
Movement down the demand curve
Shift in supply
Movement up the demand curve
Shift in demand 17 When Joe went back to college to finish his degree in Economics, he cut back from full-time to part-time work at his firm. During this time, the lease on his SUV ran out and he leased a smaller compact car as a result. The smaller compact car is an example of which type of good?
Normal
Giffen
Inferior
Veblen 18 Which of the concepts below is a characteristic of a Veblen good?
An increase in price of the good causes a decrease in quantity demanded.
As price of the good increases, demand for it increases to establish prestige.
As income increases, demand for less expensive goods decreases.
A good that offers better quality and features that is consumed when income rises. 19 Joe paid $5,000 for a used car, but he was willing to pay as much as $10,000. Which economic concept below corresponds to the example above?
Producer surplus
Ceteris paribus
Deadweight loss
Consumer surplus 20 A firm that produces and distributes baked goods decides to produce more units of their frozen ice cream cakes once they experience an increase in demand for the cakes. Assuming it is a rational firm, choose the statement from below that is true.
As long as the marginal cost exceeds marginal revenue, the firm will continue to produce the cakes.
As long as the marginal revenue exceeds the marginal cost, the firm will continue to produce the cakes.
The firm will earn a higher incremental profit for each additional cake that it produces.
If the firm decides to lower the price of the cakes, the quantity demanded will decrease.