ECON 1002 Microeconomics Unit 1 Milestone

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1

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 __________.

 

profit maximization

 

consumer optimization

 

labor/leisure trade-off

 

consumer surplus

2

Which of the following is not considered a factor of production?

 

Interest earned on an investment

 

The property that a factory is built on

 

The employees for a gas station

 

A printer to make copies for a company

3

The rational consumer will seek to do which of the following?

 

Consume to the point where utility is the highest while also using the fewest amount of resources

 

Recognize that opportunity costs do not exist when resources are fully employed

 

Use infinite resources to maximize consumption

 

Increase consumption at zero opportunity cost.

4

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?

 

Ceteris paribus

 

Consumer surplus

 

Producer surplus

 

Deadweight loss

5

Consumer surplus exists in which of the following situations?

 

Craig is happy to purchase three DVDs at $15 each.

 

Sam decides not to purchase a new bicycle until the price falls by $10.

 

Sarah is willing to pay the $60 ticket price for an upcoming concert, but is happy to buy a ticket from her roommate for $45.

 

The price of movie tickets falls and Ralph takes his entire family to the movies.

6

Which of the following would a student of macroeconomics NOT study?

 

The percentage of a nation's labor force that is employed

 

How governments can act to alleviate a recession

 

How the price of apples affects the market for oranges

 

Changes in the overall price level in an economy over time

7

When the small town where Grand Vacations was located experienced an increase in its unemployment rate, the travel agency, whose prices remained constant, saw a decline in the number of customers seeking its services.

Which of the economic principles below is being demonstrated in this example?

 

Shift in supply

 

Movement along the supply curve

 

Shift in demand

 

Movement along the demand curve

8

Determine which of the following is an example of opportunity cost.

 

How many times will I be able to wear this shirt before it falls apart or goes out of style?

 

If I take a second job, I will have more money, but less time to spend with my family.

 

With my current salary, I can only afford to spend $500/month on food.

 

We have a week of vacation. Let's go on a Mexican cruise.

9

Which choice below is a factor in the process of resource allocation for consumers?

 

Capital

 

Land

 

Time

 

Short-run constraints

10

Which of the following defines cost minimization?

 

A firm’s procedure for determining supply and cost that yields the greatest gain

 

The sacrifice made by choosing one value or opportunity over another

 

A firm’s output strategy that incurs the least amount of expenditure

 

The amount of utility gained by a firm as a result of producing an additional unit of a particular good

11

Which of the concepts below is a characteristic of a Veblen good?

 

A good that offers better quality and features that is consumed when income rises.

 

An increase in price of the good causes a decrease in quantity demanded.

 

As income increases, demand for less expensive goods decreases.

 

As price of the good increases, demand for it increases to establish prestige.

12

Which one of the following examples would cause a movement along the demand curve?

 

The price of a service remains constant, but changes in preferences affect demand.

 

The price of a service remains constant, but a change of price in related goods affects demand.

 

The price of a service remains constant, but a change in income affects demand.

 

The price of a product decreases, therefore the quantity demanded increases.

13

When Joe went back to college to finish his degree in Economics, he cut back from full-time to part-time work at his firm. During this time, the lease on his SUV ran out and he leased a smaller compact car as a result. 

The smaller compact car is an example of which type of good?

 

Inferior

 

Giffen

 

Veblen

 

Normal

14

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?

 

Examining each of the factors of production before making a decision

 

Including all models of economic behavior when making a decision

 

Holding other factors constant and only examining effect of price on supply and demand

 

Taking all factors affecting demand into consideration

15

Which of the following is characteristic of macroeconomics?

 

A consumer's reaction to an increased taxation on cigarettes

 

Factors that help determine menu prices at a local restaurant

 

A study analyzing a nation’s unemployment rate

 

A consumer's reaction to changes in the price of gasoline

16

 

Which of the following is NOT an example of a shift in demand or supply?

 

As more books become available in electronic form, demand for paperback books decreases.

 

A fertilizer price reduction of $10 per bag causes farmers to buy more.

 

Technological advances increase the production of a particular product, causing a change in supply.

 

Around the winter holidays, demand increases for a particular children’s toy.

17

Identify which statement is a characteristic of long-run for a firm.

 

Time period with the least control over constraints

 

Time period when constraints are most likely to be variable

 

Time period of determining quantity and cost that yields the greatest profit

 

Time period with at least one fixed element

18

Which choice below is NOT an example of an intermediate good?

 

Orange juice sold at a grocery store

 

Juice that is used in a mixed drink sold at a bar

 

Vegetables in a salad sold at a restaurant

 

Cloth used to make clothing sold at a mall

19

A firm that produces and distributes baked goods decides to produce more units of their frozen ice cream cakes once they experience an increase in demand for the cakes.

Assuming it is a rational firm, choose the statement from below that is true.

 

As long as the marginal revenue exceeds the marginal cost, the firm will continue to produce the cakes.

 

As long as the marginal cost exceeds marginal revenue, the firm will continue to produce the cakes.

 

If the firm decides to lower the price of the cakes, the quantity demanded will decrease.

 

The firm will earn a higher incremental profit for each additional cake that it produces.

20

Josh is a hockey player on his university's team. He practices four times a week with his team and sometimes attends Friday night open skate with his friends. If Josh decides to attend the Friday night skate, the cost is $5. 

Which of the following is economically true regarding Josh's decision to join his friends on Friday night?

 

Since Josh already skates four times a week with his hockey team, he will never choose to skate a fifth time that week.

 

Josh will only attend Friday night skate if there is no charge, a fifth time skating will not benefit him at all.

 

If Josh decides to join his friends, he must feel that he gains at least $5 in fun by attending a fifth weekly session on the ice.

 

Josh should never attend Friday night open skate--he could get hurt and jeopardize his hockey career.

1

The rational consumer will seek to do which of the following?

 

Use infinite resources to maximize consumption

 

Consume to the point where utility is the highest while also using the fewest amount of resources

 

Increase consumption at zero opportunity cost.

 

Recognize that opportunity costs do not exist when resources are fully employed

2

Which one of the following examples would cause a movement along the demand curve?

 

The price of a service remains constant, but changes in preferences affect demand.

 

The price of a product decreases, therefore the quantity demanded increases.

 

The price of a service remains constant, but a change of price in related goods affects demand.

 

The price of a service remains constant, but a change in income affects demand.

3

Which of the following would cause the supply curve to shift to the right?

 

The price of lead increases; as a result there are fewer pencils produced.

 

The price of wheat decreases, so more bread is produced.

 

The price of cotton increases, so farmers grow more cotton.

 

The price of apples falls, so consumers purchase more apples.

4

When Joe went back to college to finish his degree in Economics, he cut back from full-time to part-time work at his firm. During this time, the lease on his SUV ran out and he leased a smaller compact car as a result. 

The smaller compact car is an example of which type of good?

 

Normal

 

Veblen

 

Inferior

 

Giffen

5

Which of the following would a student of macroeconomics NOT study?

 

The percentage of a nation's labor force that is employed

 

Changes in the overall price level in an economy over time

 

How governments can act to alleviate a recession

 

How the price of apples affects the market for oranges

6

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.

 

With my current salary, I can only afford to spend $500/month on food.

 

How many times will I be able to wear this shirt before it falls apart or goes out of style?

7

Josh is a hockey player on his university's team. He practices four times a week with his team and sometimes attends Friday night open skate with his friends. If Josh decides to attend the Friday night skate, the cost is $5. 

Which of the following is economically true regarding Josh's decision to join his friends on Friday night?

 

Since Josh already skates four times a week with his hockey team, he will never choose to skate a fifth time that week.

 

If Josh decides to join his friends, he must feel that he gains at least $5 in fun by attending a fifth weekly session on the ice.

 

Josh will only attend Friday night skate if there is no charge, a fifth time skating will not benefit him at all.

 

Josh should never attend Friday night open skate--he could get hurt and jeopardize his hockey career.

8

Which of the following is NOT an example of the labor-leisure tradeoff?

 

A firm decides to layoff workers in order to meet budget.

 

Sam skips dinner with friends in order to complete a project for school.

 

Debbie declines to accept overtime work and pay in order to join her family at the beach for a long weekend.

 

A CEO decides to have a company retreat over a long weekend, figuring the improvement to morale will offset the cost to the firm.

9

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 __________.

 

profit maximization

 

labor/leisure trade-off

 

consumer surplus

 

consumer optimization

10

Due to high unemployment, people travel less, which affects the markets for things like hotel rooms and gasoline.

 

Which economic concept corresponds to this scenario?

 

Movement up the demand curve

 

Shift in supply

 

Movement down the demand curve

 

Shift in demand

11

A firm acts as a rational decision maker when its leaders decide to do which of the following?

 

Using all of its resources in order to maximize production, regardless of profit

 

Cut hours and workers in order to minimize costs

 

Solely using labor in a production process, rather than a combination of labor and capital

 

Entice investors by promising lower than average returns on investment

12

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?

 

Ceteris paribus

 

Deadweight loss

 

Producer surplus

 

Consumer surplus

13

Which answer choice below is NOT an example of microeconomics?

 

Analysis of the influence of changes in healthcare on a small business

 

A study of how one's salary level influences spending on leisure items

 

A study of whether or not the trade embargo against Iran has been successful

 

An analysis of how a change in one's salary affects individual shopping habits

14

Which of the following combinations contains both an intermediate good and a final good?

 

Tires and bicycles

 

Steak and chicken

 

Architect and new building

 

Peanut butter and jelly

15

Which of the following is an example of a constraint?

 

Harbor Sweets will produce to the point where marginal revenue is equal to marginal cost.

 

Sarah decides not to purchase an additional pair of Ugg boots because she already has two pairs at home.

 

A SouthCoast Clothing decides that five machines and 15 workers is the most efficient in production.

 

Peter's Place can serve 300 people in its banquet room, and often has to turn away large parties.

16

Which of the following is not considered a factor of production?

 

Interest earned on an investment

 

The employees for a gas station

 

The property that a factory is built on

 

A printer to make copies for a company

17

When a firm incurs an additional cost to produce one more unit, this is known as which of the following?

 

Fixed cost

 

Per-unit profit

 

Marginal cost

 

Marginal revenue

18

A real estate agency’s policy is to start all sales commission negotiations at 6%. However, the agency is willing to accept sales commissions as low as 5%.

The scenario above is an example of which principle?

 

Ceteris paribus

 

Producer surplus

 

Consumer surplus

 

Deadweight loss

19

Which of the following is an example of an inferior good?

 

A famous brand of leather good produces a handbag that costs as much as a used car. Although it is far from cheap, it is one of the brand's most popular items.

 

Very poor people in China consume a great deal of rice. When the price of rice rises, consumption of it may even rise.

 

Chris just graduated from college and sometimes eats ramen noodles when his finances get tight. After he gets his paycheck, he purchases less ramen noodles as he can afford healthier food.

 

Every once in a while, Nelly treats herself to a manicure and pedicure with a massage.

20

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

 

Including all models of economic behavior when making a decision

 

Examining each of the factors of production before making a decision

 

Taking all factors affecting demand into consideration

1

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?

 

Profit maximization

 

Cost minimization

 

Infinite resources

 

Opportunity cost

2

Determine which of the following descriptions is true regarding the rational consumer.

 

Makes choices that exhibit decreasing utility with the ability to increase consumption

 

Wants to maximize utility

 

Has unlimited resources to consider in making decisions

 

Makes decisions based on an unlimited income

3

Leah has two options this Friday evening. She can either babysit for her professor's kids and earn $50 for the evening, or she can join some friends for dinner and a movie. The movie will cost $25 for ticket and concessions and dinner usually runs around $20.  Her roommate has a coupon for 50% off dinner at their favorite restaurant and is trying to convince Leah to come with them rather than babysitting.

Which of the following is Leah's opportunity cost if she decides to go with her friends?

 

The $10 she will save using the 50% off coupon for dinner

 

The $25 she will spend on movie ticket and concessions

 

The $50 she would earn from babysitting

 

The difference between what she would earn from babysitting and what she would spend at dinner and the movies

4

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 cost

 

Consumer optimization

 

Constraint

 

Marginal benefit

5

Bob opens a new diner and has to make many decisions about the resources he is going to employ.

 

Which of the following combinations is NOT correct?

 

The wait staff is an example of labor.

 

The restaurant building is an example of land.

 

A brick oven is an example of capital.

 

A computer ordering system for staff is an example of technology.

6

Which of the following is true about the field of economics?

 

Economics is commonly broken into Labor Economics and Consumer Economics

 

Economics as a field of study was introduced during the Industrial Revolution and has not changed over time

 

Economics can correctly predict when a recession is coming and how long it will last

 

Economics is a social science that intersects with other fields of study

7

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 optimization

 

profit maximization

 

labor/leisure trade-off

 

consumer surplus

8

A real estate agency’s policy is to start all sales commission negotiations at 6%. However, the agency is willing to accept sales commissions as low as 5%.

The scenario above is an example of which principle?

 

Ceteris paribus

 

Deadweight loss

 

Producer surplus

 

Consumer surplus

9

Which of the following is an intermediate good?

 

pizza sold to a customer in a restaurant

 

Flour used to bake bread in a bakery

 

A textbook used by a teacher in a classroom

 

A tractor used by a farmer

10

A local supermarket was forced to hold a sale on beef when they received an extra shipment of this perishable good. Over the course of the weekend, the store sold twice as many packages of ground beef as they normally do.

 

This is an example of which economic principle?

 

Movement along the demand curve

 

Shift in demand

 

Movement along the supply curve

 

Shift in both supply and demand

11

 

Which of the following is NOT an example of a shift in demand or supply?

 

Technological advances increase the production of a particular product, causing a change in supply.

 

A fertilizer price reduction of $10 per bag causes farmers to buy more.

 

Around the winter holidays, demand increases for a particular children’s toy.

 

As more books become available in electronic form, demand for paperback books decreases.

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?

 

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

 

Holding other factors constant and only examining effect of price on supply and demand

13

Which choice below is a factor in the process of resource allocation for consumers?

 

Time

 

Land

 

Capital

 

Short-run constraints

14

Identify which statement is a characteristic of long-run for a firm.

 

Time period when constraints are most likely to be variable

 

Time period with the least control over constraints

 

Time period of determining quantity and cost that yields the greatest profit

 

Time period with at least one fixed element

15

What is the study of the behavior of consumers and businesses holistically across an economy?

 

Social science

 

Civics

 

Microeconomics

 

Macroeconomics

16

During the Great Recession, many investors purchased gold and other precious metals, thinking they would be reliable forms of investment.

 

If we looked at this phenomenon on a graph, we would see which of the following?

 

Movement down the demand curve

 

Shift in supply

 

Movement up the demand curve

 

Shift in demand

17

When Joe went back to college to finish his degree in Economics, he cut back from full-time to part-time work at his firm. During this time, the lease on his SUV ran out and he leased a smaller compact car as a result. 

The smaller compact car is an example of which type of good?

 

Normal

 

Giffen

 

Inferior

 

Veblen

18

Which of the concepts below is a characteristic of a Veblen good?

 

An increase in price of the good causes a decrease in quantity demanded.

 

As price of the good increases, demand for it increases to establish prestige.

 

As income increases, demand for less expensive goods decreases.

 

A good that offers better quality and features that is consumed when income rises.

19

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

 

Deadweight loss

 

Consumer surplus

20

A firm that produces and distributes baked goods decides to produce more units of their frozen ice cream cakes once they experience an increase in demand for the cakes.

Assuming it is a rational firm, choose the statement from below that is true.

 

As long as the marginal cost exceeds marginal revenue, the firm will continue to produce the cakes.

 

As long as the marginal revenue exceeds the marginal cost, the firm will continue to produce the cakes.

 

The firm will earn a higher incremental profit for each additional cake that it produces.

 

If the firm decides to lower the price of the cakes, the quantity demanded will decrease.

The machinery that is used to construct and embroider running apparel would be an example of which of the following?

ï‚·

Land

ï‚·

Labor

ï‚·

Capital

ï‚·

Natural resources

 

Which of the following is NOT an example of the labor-leisure tradeoff?

ï‚·

Sam skips dinner with friends in order to complete a project for school.

ï‚·

A firm decides to layoff workers in order to meet budget.

ï‚·

A CEO decides to have a company retreat over a long weekend, figuring the improvement to morale will offset the cost to the firm.

ï‚·

Debbie declines to accept overtime work and pay in order to join her family at the beach for a long weekend.

 

Which of the following is an example of macroeconomics?

ï‚·

An analysis of the most efficient way for a small business to produce the highest quality of goods while achieving the highest profit

ï‚·

A consumer’s decision whether to spend a weekly paycheck on a small vacation or to stay home and save that weekly pay

ï‚·

A restaurant owner’s decision on whether to open another location or to expand the current building

ï‚·

A study that analyzes the reasons why one nation’s economy has grown faster than another nation’s economy

 

Which of the following is characteristic of macroeconomics?

ï‚·

A study analyzing a nation’s unemployment rate

ï‚·

A consumer's reaction to an increased taxation on cigarettes

ï‚·

Factors that help determine menu prices at a local restaurant

ï‚·

A consumer's reaction to changes in the price of gasoline

 

Which of the following defines cost minimization?

ï‚·

A firm’s procedure for determining supply and cost that yields the greatest gain

ï‚·

A firm’s output strategy that incurs the least amount of expenditure

ï‚·

The amount of utility gained by a firm as a result of producing an additional unit of a particular good

ï‚·

The sacrifice made by choosing one value or opportunity over another

 

Anita gets a new job and her salary doubles. As a result, she moves to a bigger apartment in a trendy part of town. 

Her new apartment, as a result of her increase in salary, can be categorized as which of the following two types of goods?

ï‚·

Veblen and Normal

ï‚·

Veblen and Inferior

ï‚·

Giffen and Inferior

ï‚·

Giffen and Normal

 

When Joe went back to college to finish his degree in Economics, he cut back from full-time to part-time work at his firm. During this time, the lease on his SUV ran out and he leased a smaller compact car as a result. 

The smaller compact car is an example of which type of good?

ï‚·

Inferior

ï‚·

Veblen

ï‚·

Normal

ï‚·

Giffen

 

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?

ï‚·

Taking all factors affecting demand into consideration

ï‚·

Holding other factors constant and only examining effect of price on supply and demand

ï‚·

Including all models of economic behavior when making a decision

ï‚·

Examining each of the factors of production before making a decision

 

Which statement below is NOT true regarding short-run and long-run production constraints?

ï‚·

The size of the site of production is variable in the long-run.

ï‚·

The standard assumption in economics is that all factors are variable in the long-run.

ï‚·

Changes in production capacity are more variable in the long-run.

ï‚·

Constraints are variable in the short-run and fixed in the long-run.

 

In anticipation of an upcoming football season, State University increased the price of all logo apparel at the bookstore. To the bookstore manager's surprise, he sold fewer units of logo apparel. 

 

This situation is an example of which of the following?

ï‚·

Shift in demand to the left

ï‚·

ï‚·

Decrease in quantity demanded

ï‚·

ï‚·

Increase in quantity demanded

ï‚·

ï‚·

Shift in demand to the right

ï‚·

When quantity demanded for a good equals quantity supplied, what will happen to a market for that good?

ï‚·

Quantity supplied will always increase as long as a profit can be made

ï‚·

ï‚·

The market is considered to be in equilibrium

ï‚·

ï‚·

Consumers will find other markets due to the shortage

ï‚·

ï‚·

Suppliers will supply fewer units in order to drive up price

ï‚·

Which of the following would a student of macroeconomics NOT study?

ï‚·

The percentage of a nation's labor force that is employed

ï‚·

ï‚·

Changes in the overall price level in an economy over time

ï‚·

ï‚·

How the price of apples affects the market for oranges

ï‚·

ï‚·

How governments can act to alleviate a recession

ï‚·

Determine which definition below corresponds with ceteris paribus?

ï‚·

The S curve is upward sloping.

ï‚·

ï‚·

A phrase that means considering one factor and assuming all others are the same.

ï‚·

ï‚·

An increase in income will cause consumers to purchase more normal goods.

ï‚·

ï‚·

A negative advertisement will cause consumers to purchase less of the good.

ï‚·

Tania really enjoyed the salads sold at her local grocery store, so she purchased five of them to eat throughout the week. The first salad is delicious, and Tania eats it quickly, looking forward to the next one. The second day, the next salad is also good. By the third day, some of the ingredients in the next salad are starting to go bad, and by the fourth day, Tania cannot bring herself to eat any more and throws away the remaining salads.

Which statement would be unlikely in economic terms?

ï‚·

Tania's marginal benefit was higher for the first two salads than the third and fourth.

ï‚·

Tania would achieve higher marginal utility by eating something other than the fourth salad.

ï‚·

Tania would achieve higher marginal utility if she purchased fewer salads.

ï‚·

 

Tania achieved utility maximization with her purchase of five salads.

Which statement below does NOT describe the effect of climate change seen in insurance claim activities?

ï‚·

The damage from climate change is expected to influence the spread of vector-borne disease.

ï‚·

Global property and casualty insurers have paid out unprecedented sums related to natural disasters.

ï‚·

The limitation of insurance availability is expected to reduce economic growth.

ï‚·

Climate change has resulted in heightened weather volatility, which is reflected in insurance claims.

 

A club good, such as a movie theater, is __________.

ï‚·

excludable and non-rivalrous

ï‚·

excludable and rivalrous

ï‚·

non-excludable and non-rivalrous

ï‚·

non-excludable and rivalrous

 

Which statement below is NOT true regarding process mapping?

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Process mapping forms a foundation for efficiency evaluation.

ï‚·

A process map is a visual representation of the stages in a process.

ï‚·

Process mapping is used for evaluating sustainable business solutions.

ï‚·

Almost all business practices and decisions have been documented in some way or another.

 

Joe owns an electrical company that specializes in work on custom homes.

Which of the following economic indicators would be most helpful in Joe's line of business for helping him to decide whether or not to add a permanent employee to payroll?  

ï‚·

Building permits

ï‚·

The unemployment rate

ï‚·

The Conference Board Consumer Confidence Index

ï‚·

The S & P 500

 

 

Which of the following is true regarding contingent valuation?

ï‚·

An approach used to compare expenses and value-added when making a decision relative to the environment

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Used to evaluate individual preferences in order to place a value on the environment

ï‚·

An examination of healthcare costs that are incurred as a result of pollution

ï‚·

Seen when houses located in areas of less pollution have greater value

 

 

Which of the following is an example of a sustainable business practice as it relates to employment?

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Businesses lay off workers to keep costs down.

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Businesses recognize the benefit of keeping skilled workers in the long run.

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Businesses trade labor for capital during periods of economic growth.

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Businesses lay off workers during downturns in the business cycle.

Which of the following occurs when a subsidy is provided?

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The demand curve may shift to the left; price will decrease and quantity sold will increase.

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The supply curve may shift to the right; price will increase and quantity sold will increase.

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The demand curve may shift to the right; price will decrease and quantity sold will increase.

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The supply curve may shift to the right; price will decrease and quantity sold will increase.

Which of the following is NOT one of the causes of unemployment? 

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Economic slowing

ï‚·

Natural separation of employees

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Change in industry composition

ï‚·

The implementation of sustainable business practices

 

If William quit his office job and is now looking for a position teaching English overseas, what type of unemployment would he be experiencing? 

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Structural 

ï‚·

Seasonal 

ï‚·

Cyclical

ï‚·

Frictional

Which of the following corresponds with non-competitive market failure?

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A tax on imported cotton that raises the price of cotton for consumers

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Farmers unaware of market price for cotton

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One international corporation with a monopoly on cotton seed production

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Pesticide used to keep cotton free of insects makes people sick

 

 

Tania really enjoyed the salads sold at her local grocery store, so she purchased five of them to eat throughout the week. The first salad is delicious, and Tania eats it quickly, looking forward to the next one. The second day, the next salad is also good. By the third day, some of the ingredients in the next salad are starting to go bad, and by the fourth day, Tania cannot bring herself to eat any more and throws away the remaining salads.

Which statement would be unlikely in economic terms?

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Tania's marginal benefit was higher for the first two salads than the third and fourth.

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Tania would achieve higher marginal utility by eating something other than the fourth salad.

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Tania would achieve higher marginal utility if she purchased fewer salads.

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Tania achieved utility maximization with her purchase of five salads.

The additional income a company generates from selling one more unit due to this is called which of the following?

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Price effect

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Break even point

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Output effect

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Diseconomies of scale

 

A(n) __________ good is one that, when consumed by one person, cannot be consumed by another. 

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non-rivalrous

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rivalrous

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non-exclusive

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exclusive

 

SmartExpert

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Status NEW Posted 30 Apr 2020 05:04 PM My Price 25.00

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