Sophia Microeconomics Final Milestone /Sophia __ Microeconomics Final Milestone Questions And Answers

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Score 22/25 You passed this Milestone 22 questions were answered correctly. 3MqueIstLionEs wSereTanOsweNredEincorrectly. Which of the following describes an industry that experiences econom... ies of scale, even at high levels of output? Monopolistic competition Perfectly competitive industry Natural monopoly Oligopoly CONCEPT Constant, Increasing and Decreasing Cost Industries 2 If the market price of apples drops to $9, at which of the following will the firm be? Below the shutdown point Making a profit Just breaking even Operating at a short term loss At the shutdown point CONCEPT Breakeven Point 3 Which of the following market structures has only one seller, who acts as a price maker? Monopolistic competition Oligopoly Monopoly Perfect competition CONCEPT Monopoly 4 Which of the following is why the long run average cost curve must lie at the same level or below any short run average cost curve? Because in the long run, a firm will generally operate at higher per-unit cost than in the short run Because of economies of scale Because of the law of diminishing returns Because in the long run, all production costs are variable CONCEPT Long-Run Supply Curve 5 Determine which statement below applies when income goes down. Consumer preference for normal goods increases. The indifference curve shifts to the right. Consumer preference for inferior goods decreases. The indifference curve shifts downward and to the left. CONCEPT Budget Constraints: Change in Income 6 Which of the following is true about the field of economics? Economics is a social science that intersects with other fields of study Economics as a field of study was introduced during the Industrial Revolution and has not changed over time Economics is commonly broken into Labor Economics and Consumer Economics Economics can correctly predict when a recession is coming and how long it will last CONCEPT What is Economics? 7 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 benefit Marginal cost Constraint Consumer optimization CONCEPT Cost and Benefit Optimization for Consumers 8 Which of the following scenarios relates to both natural and frictional employment? Linda lost her job in manufacturing due to her company moving all manufacturing out of the country. Mikhal just moved with his family from Miami to Chicago and is looking for work. Michelle is unemployed because she doesn't have the technology skills needed in the current job market. Chip lost his job due to a massive slowdown in the economy and cannot find a job in the current recession. CONCEPT Assessing Costs of Unemployment--Labor Economics 9 Rent control is a type of price that has the effect of producer surplus as compared to the free market equilibrium. floor; reducing ceiling; reducing ceiling; increasing floor; increasing CONCEPT Welfare Analysis 10 Brent decides to purchase ground beef to make tacos rather than pricier steak because his weekly budget restricts his expenditure on food. Brent is acting as a rational consumer in that he is recognizing that . he is keeping his total costs below his variable costs he needs to stay within his budget constraint he is spending beyond his budget to feed his family he is purchasing where his marginal cost is greater than his marginal benefit CONCEPT Cost and Benefit Optimization for Consumers 11 Laura was in charge of purchasing food for the next book club meeting. She usually ordered sandwiches from the nearby deli, but the price of sandwiches had increased. One option for food was ordering pizza, which was $3 less than a sandwich. However, because the price of sandwiches had gone up, Laura could afford fewer sandwiches and pizza than previous meetings. The reduction in Laura's ability to purchase both sandwiches and pizza due to the increase of price in sandwiches is known in economic terms as . a budget constraint the income effect the substitution effect a change in income CONCEPT Budget Constraints: Change in Price 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? Holding other factors constant and only examining effect of price on supply and demand 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 CONCEPT Demand Supply 13 Given the information in the graph shown here, at which level of production will profit be maximized? 69 80 73 50 CONCEPT Output Optimization: Total Revenue / Total Cost 14 CEOs are limited in making policy changes regarding climate change by all of the following EXCEPT . his/her fiduciary responsibility to the company investor support which is linked directly to profits the necessity to think in the long term rather than the short term needing support from the Board of Directors CONCEPT Sustainable Returns--Investor Impact 15 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? Opportunity cost Cost minimization Infinite resources Profit maximization CONCEPT Decision Making Relationships: Rational Firm 16 Diseconomies of scale are seen when . the long run average cost curve is rising the marginal revenue curve intersects the marginal cost curve the marginal cost curve intersects the average cost curve the fixed cost curve does not change over the scope of production CONCEPT Economies, Constant and Diseconomies of Scale 17 In a pure market economy, public goods . are provided by the government are over-provided, because the government is not involved in the economy are sold at a higher price than private goods tend to be under-provided CONCEPT Comparative Economic Systems 18 Which statement below is true about the $75 Peter and his wife occasionally spend for two meals and drinks at a Korean barbecue restaurant since Peter was promoted, if the income elasticity for the expense is 2? It is an inferior good. It is a substitute. It is a complement. It is a luxury good. CONCEPT Income Elasticity 19 Select the definition that represents an oligopoly. A market structure that consists of a few firms that all sell similar products A model that explains why price fixing tends to break down A group of firms engaged in price fixing When firms work together to determine the price and number of products CONCEPT Oligopoly 20 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. How many times will I be able to wear this shirt before it falls apart or goes out of style? With my current salary, I can only afford to spend $500/month on food. CONCEPT Decision Making Relationships: Rational Consumer 21 Which of the following corresponds with unemployment insurance claims? Leading indicators that firms might use to predict which part of the business cycle an economy is in Lagging indicator that firms might use to analyze what labor costs will be in the future Coincident indicators that lets people know which industries might be hiring Indicators collected by states for tax purposes CONCEPT Key Leading Indicators 22 Marginal cost is equal to the . average fixed cost plus average variable cost change in total cost involved with producing one more unit average total cost minus the fixed cost total cost minus fixed costs CONCEPT Cost: Total, Marginal and Average 23 If the firm is decreasing production from Q1 to Q2, how is the firm doing? None of these answer choices are correct. Very poorly; it is past the shutdown point. It is at the break even point. Good; it is making a profit. Poorly; it is at the shutdown point. CONCEPT Shut-down Point 24 Which statement below refers to the law of diminishing returns? This is the spot on an indifference curve that maximizes utility, given budget constraints. This states that the consumer's utility is dependent on different variables. This is equivalent to the slope of an indifference curve. After a certain point, the rate of utility decreases with each additional unit of an item consumed. CONCEPT Utility Theory 25 Which of the following statements is NOT true regarding process mapping? It is a pictorial representation of a process. Symbols are used to guide the process map. It is used to document processes. It is an established procedure, developed in the 1930s. CONCEPT Process Mapping--Efficiency © 2020 SOPHIA Learning, LLC. SOPHIA is a registered trademark of SOPHIA Learning, LLC. About Contact Us Privacy Policy Terms of Use [Show More]

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