Sophia Microeconomics Unit 1, 2 ,3 & 4 - Sophia Learning_ All Milestones Questions and Answers with Complete Solutions (219 Page Compilation)

SOPHIA Microeconomics Sophia Learning - Microeconomics - Unit 1, Challenge 1 What is Economics? Which of the following statements describes macroeconomics? c.) It looks at the overall ups and downs of the economy. ...

SOPHIA Microeconomics Sophia Learning - Microeconomics - Unit 1, Challenge 1 What is Economics? Which of the following statements describes macroeconomics? c.) It looks at the overall ups and downs of the economy. d.) individuals and firms Macroeconomics studies the behavior of __________. d.) an economy in its entirety 2 of 219 Decision Making Relationships: Rational Consumer Which of the following best describes a rational consumer? d.) Wants to make choices that maximize utility Microeconomics focuses mainly on the study of decisions made by __________. Which of the following is a characteristic of a rational consumer? a.) 3 of 219 Rational consumers analyze costs and benefits when making decisions. Ben was offered a full-time position working on his uncle's construction crew and would be paid $20 per hour. Instead, Ben chose to take classes at the local college so he could finish his degree. In economic terms, this loss of potential income is known as a(n) __________. d.) opportunity cost 4 of 219 Resource Allocation for Consumers Which of the following statements is true as it relates to labor/ leisure trade-off? d.) It is the comparison of time spent working to time spent participating in non-work activities. Terry currently works a part-time evening job on campus. With this job, he has free time on the weekends to hang out with his friends and catch up on school work. However, a nearby shoe store, Speedy Feet, is hiring for $10/hour. He would be able to 5 of 219 earn a higher income and a significant discount on running gear that he would be buying anyway. Terry has to take into consideration which of the following economic principles when deciding whether to forego his current job at the university in favor of a job at the shoe store? b.) Labor/leisure trade-off c.) Economists assume that all rational consumers will allocate their 6 of 219 resources in order to __________. maximize their utility Cost and Benefit Optimization for Consumers