Sophia Microeconomics-2 Milestone. Final. Score 22/25.

7/27/2020 Sophia :: Welcome MILESTONE Score 22/25 You passed this Milestone 22 questions were answered correctly. 3 questions were answered incorrectly. 1 The idea that a consumer must be able to evaluate all o ...

7/27/2020 Sophia :: Welcome MILESTONE Score 22/25 You passed this Milestone 22 questions were answered correctly. 3 questions were answered incorrectly. 1 The idea that a consumer must be able to evaluate all of the choices offered fulfills the assumptions of which of the following, related to preference behavior? Completeness Non-satiation Transitivity Consumer choice CONCEPT Consumer Choice Theory 2 Which one of the following is NOT an example of a practice that contributes to anthropomorphic climate change? Change in migration patterns7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 2/13 Overuse and grazing of lands Deforestation and use of pesticides Emissions of greenhouse gases CONCEPT Assessing Costs of Anthropomorphic Climate Change--Regulatory Intervention 3 A popular clothing website sold five units of a dress when the price was $300 and 20 units when the price was marked down to $100. What is the own-price elasticity of demand for the dress using the midpoint formula? 2.5 1.25 -2 -1.2 CONCEPT Own-Price Elasticity 4 The Prisoner's Dilemma can come into play when firms ___________. decide whether to work together on things like price or production levels are regulated by the government in order to provide fair pricing to consumers engage in predatory pricing to move each other out of the market7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 3/13 are forced to advertise and market their goods to consumers CONCEPT Oligopoly 5 Jim usually goes to the movies with friends on Friday nights at the local movie theater. This week, the movie theater held over the movie, Anchorman 2, which Jim saw last week. Jim and his buddies decide to go bowling rather than attend the movie a second time. Which of the following best describes why Jim decided to go bowling this weekend? Profit maximization Jim's utility function Consumer budget constraint Diminishing marginal returns CONCEPT Utility Theory 6 If the variable costs for a firm are $57, the fixed costs are $143, and the firm sells 40 units, what are the firm's average total costs? $5.00 $25.00 $10.00 $20.007/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 4/13 CONCEPT Cost: Total, Marginal and Average 7 A person who consumes a good without paying for it is known as a(n) __________. utility maximizer producer rival free rider CONCEPT Public Goods, Private Goods, and the “Tragedy of the Commons” 8 Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product 0 0 0 1 19 19 2 50 31 3 75 25 4 96 21 5 111 15 Based on the data in this table, how many employees should the company hire in order to maximize their profit if the price of product is $5 and cost of each worker is $100? Five employees Four employees Three employees7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 5/13 Two employees CONCEPT Output Optimization: Marginal Revenue Product 9 Which type of firms will belong to a decreasing cost industry at high output levels? Perfect competition Monopoly It is impossible for firms to have decreasing costs at a high output level All firms are equally situated to enjoy decreasing costs at a high output level CONCEPT Constant, Increasing and Decreasing Cost Industries 10 Sarah is a great teacher; however, she struggles with the technology used by potential students and school districts, and thus is not able to find work. Sarah's type of unemployment is considered __________. cyclical structural frictional seasonal CONCEPT7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 6/13 Assessing Costs of Unemployment--Labor Economics 11 Based on the descriptions below of different jobs Nancy has held, which would qualify as an oligopoly? Nancy was a telemarketer for a software company with many buyers and sellers. Everyone’s products were fairly unique, but it was very easy to enter the software market. One advantage Nancy’s company had was that it had an informational advantage over many other companies. Nancy was a customer service representative for the local water company. The company had exclusive rights to operate as the only company providing water to local residents since the costs to lay competing pipelines were a barrier to entry preventing competition. They were, however, regulated by the government. Nancy was a fruit vendor. In her market there were many buyers and sellers. It was easy and cheap to start a vendor stand. Everyone’s fruits were basically identical. Nancy was an administrative assistant for an oil company with very few other sellers. Other companies had trouble getting into the fossil fuel market. All the fossil fuel companies had the same information, but they had an information advantage over the buyers. CONCEPT Oligopoly 12 Which example below represents a fixed input? Hourly employees Raw materials for construction Utility bills Office space being rented CONCEPT7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 7/13 Production Function and Constraints 13 Using the data provided, what production quantity would represent output optimization for this firm? 70 100 80 95 25 CONCEPT Output Optimization: Marginal Revenue / Marginal Cost 14 Which of the following describes the visual representation of the steps that form a process?7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 8/13 It is an established process that's been used for over a century. Almost all processes have been documented in this way. Every process needs to be constructed as a closed loop. It plays an important role in efficiency evaluation. CONCEPT Process Mapping--Efficiency 15 This graph below shows three indifference curves for blankets and pillow cases. Consider choice A and determine why this would NOT be the optimal choice. Additional income would be left over with this choice. The consumer cannot afford this choice.7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 9/13 It does not provide the consumer with the highest level of utility possible. These indifference curves violate the conditions of consumer theory. CONCEPT Optimal Choice 16 Which of the following is characteristic of macroeconomics? A consumer's reaction to an increased taxation on cigarettes A consumer's reaction to changes in the price of gasoline Factors that help determine menu prices at a local restaurant A study analyzing a nation’s unemployment rate CONCEPT What is Economics? 17 Which of the following is a trait of a perfectly competitive market? Firms are price makers Barriers to entry exist Firms are not producing at minimum cost Information flows freely CONCEPT7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 10/13 Perfect Competition 18 When a firm incurs an additional cost to produce one more unit, this is known as which of the following? Marginal revenue Marginal cost Per-unit profit Fixed cost CONCEPT Cost and Benefit Optimization for Producers 19 A(n) __________ good is one that can be consumed by one person, and still continue to be consumed by other people. exclusive non-exclusive rivalrous non-rivalrous CONCEPT Public Goods, Private Goods, and the “Tragedy of the Commons” 20 Where the supply curve is more inelastic than the demand curve, who bears more of the burden of a tax?7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 11/13 Consumers Both consumers and producers share the burden equally There is not enough information to answer this question Producers CONCEPT Taxation and Subsidy 21 Product Price Unit Cost Units Sold Units Produced Opportunity Costs $35.00 $5.00 100 1000 $750 Given the information in the table shown here, the economic profit is which of the following? $2,250 -$1,500 $1,500 -$2,250 CONCEPT Economic Profit 22 Which choice below is NOT an example of an intermediate good? Orange juice sold at a grocery store7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 12/13 Juice that is used in a mixed drink sold at a bar Cloth used to make clothing sold at a mall Vegetables in a salad sold at a restaurant CONCEPT Factor Markets 23 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 Consumer surplus Deadweight loss CONCEPT Market Equilibrium 24 Which choice below is a factor in the process of resource allocation for consumers? Capital Land7/27/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5233125 13/13 Time Short-run constraints CONCEPT Resource Allocation for Consumers 25 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 surplus profit maximization labor/leisure trade-off consumer optimization CONCEPT Cost and Benefit Optimization for Consumers