Sophia Unit 1 Challenge 2 Microeconomics Latest Update with Complete Solutions

Which of the following is an example of being labor intensive? c.) The wiring for a custom-built house Which of the following is true of capital-intensive and labor-intensive goods? a.) Capital and labor can be subs ...

Which of the following is an example of being labor intensive? c.) The wiring for a custom-built house Which of the following is true of capital-intensive and labor-intensive goods? a.) Capital and labor can be substitutes for each other. Anderson's Running manufactures a hydration belt, which includes two water bottles. These belts are in high demand with runners because of the unique fit of the belt. Anderson's Running produces the hydration belt at its factory, but it purchased the water bottles in bulk from another supplier. In this scenario, the water bottles are an example of __________ goods and the hydration belt is an example of __________ goods. b.) intermediate; final Laura has started working more hours at her part-time job, giving her a higher income. She decided to purchase a higher-quality purse to replace her older bag that she currently carries. Laura visits the boutique near her job the following day. Keeping Laura's situation in mind—her recent increase in income and her desire for a higher-quality purse—the type of goods that describe the purses that are sold at the boutique are called _________ goods. b.) luxury Due to his recent increase in income, Peter is going to buy a quality pair of winter gloves from a specialty shop rather than a bargain set from a discount shop. The bargain gloves are now considered a(n) __________ good. a.) inferior This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:31:45 GMT -05:00 https://www.coursehero.com/file/66219948/Unit-1-Challange-2-Microdocx/ Becky has recently started running and needs new running shoes. While shopping at the shoe store, she sees a pair that costs $300 and asks the owner if these are the best running shoes. "Actually, the quality is not any better than this $150 pair," replies the owner. "What you're really paying for is just the brand name." Given what the owner has said, the more expensive shoes in question are examples of _________ goods. d.) Veblen Each worker at Palona can produce 10 pairs of pants in an hour, while the workers at Lakeshore Clothing produce eight pairs of pants in one hour. Which of the following best describes the situation between the two competing companies? c.) Absolute advantage Country A can produce either 10 computers or 30 bushels of apples. Country B can produce either 8 computers or 16 bushels of apples. Which of the following is true based on the information above? b.) Country A has the absolute advantage in the production of both computers and apples. The workers at Anovis can either produce 20 beanie hats or two backpacks in one hour. The workers at NorthCoast Clothing can either produce 10 beanie hats, or five backpacks, in one hour. Which of the following is true for the above scenario? c.) NorthCoast Clothing has a comparative advantage in backpack production. Which of the following would NOT be an example of ceteris paribus as it relates to the Law of Demand? a.) As the price per gallon of gasoline decreases, people purchase more gasoline. This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:31:45 GMT -05:00 https://www.coursehero.com/file/66219948/Unit-1-Challange-2-Microdocx/ d.) Due to the threat of a hurricane, the demand for generators increases. Which of the following statements about price and demand is FALSE? a.) The Law of Demand states that if price increases, the quantity produced will increase. Which choice below is a reason why a demand curve is downward sloping? b.) As price increases, consumers will purchase less of a product. The state university closed access to the nearby wooded trails five months ago because it was deemed unsafe. Ever since then, not as many runners have been purchasing trail shoes, leaving many available in the shoe store. As a result of the trail closing, which of the following occurred? a.) Shift in demand Which of the following is an example of movement along a demand curve? c.) Tomatoes have become more expensive, so consumers are buying fewer tomatoes. A specific pair of orange shoes were the trademark shoe of a famous runner and used to be so popular that a store would sell out as soon as the shoes came in. However, the famous runner got caught in a doping scheme and now no one wants to buy these shoes at all. Which answer best describes in economic terms what happened with the orange shoes? b.) A variable unrelated to the price of the shoe caused a shift in demand. Why does a supply curve slope upward? This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:31:45 GMT -05:00 https://www.coursehero.com/file/66219948/Unit-1-Challange-2-Microdocx/ c.) Because as prices increase, producers are willing and able to supply more. Which of the following is the best example of the Law of Supply? d.) As the price of scooters increases, firms produce more scooters. Which of the following statements about price and supply is FALSE? b.) The Law of Supply states that consumers will buy l