Macroeconomics > QUESTIONS & ANSWERS > Sophia: Microeconomics - Unit 1 Questions and Answers 100% Pass (All)

Sophia: Microeconomics - Unit 1 Questions and Answers 100% Pass

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Sophia: Microeconomics - Unit 1 Questions and Answers 100% Pass C1: Microeconomics studies the behavior of__________. ✔✔An economy in its entirety C1: Which of the following is a characteristic... of a rational consumer? ✔✔Rational consumers analyze costs and benefits when making decisions. C1: Economists assume that all rational consumers will allocate their resources in order to _________. ✔✔Maximize their utility. C1: Sarah is deciding between two different pairs of running shoes: The Minimalist 7, which cost $99, and the Sprint XT, which are priced at $155. Although both would meet her needs, Sarah knew that she would get more wear and more support out of the higher-priced Sprint XT shoe. If he wanted to buy the shoes today, Sarah had the ability to pay $99 for the Minimalist 7s. However, if she wanted to buy the Sprint XTs, she would need to pick up another shift at her job to earn extra money. Which of the following statements describes marginal cost? ✔✔Sarah must work another night. C1: A firm decides to produce 100,000 baseballs. Which of the following would be its opportunity cost? ✔✔The 50,000 footballs the firm could have produced otherwise. C1: Wage and salary contracts, leases and fixed factory sizing are all examples of _________. ✔✔Short-run production constraints. C1: A firm that produces running shoes is currently manufacturing a line of waterproof shoes at a marginal cost of $50 per pair. During the winter months, they were able to charge a price of $90 per pair. Now that it is summer, the demand has fallen, and they are only able to charge $60 per pair. Assuming the shoes store is a profit-maximizing firm, which of the following is true? ✔✔The firm should continue to produce the shoes since the marginal revenue is still greater than the marginal cost. C2: Which of the following is an example of being labor intensive? ✔✔The wiring for a custombuilt house. C2: 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. ✔✔Inferior C2: Which of the following would NOT be an example of ceteris paribus as it relates to the Law of Demand? ✔✔Due to the threat of a hurricane, the demand for generators increases. C2: Which of the following is an example of movement along a demand curve? ✔✔Tomatoes have become more expensive, so consumers are buying fewer tomatoes. C2: Which of the following is the best example of the Law of Supply? ✔✔As the price of scooters increases, firms produce more scooters. C2: A movement along the supply curve for coffee would occur when _________. ✔✔The price of coffee decreases [Show More]

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