Unit 1: The Basics of Microeconomics
- Milestone Exam Questions &
Answers (Grade A+)
Interest rates rise on your savings account at your bank, and you
decide to save 5% more from your paycheck to take advantage of
the increased rates. Which of the six core principles of the
economic way of thinking does this decision illustrate? -
correct answer ✅People Respond in Predictable Ways to
Incentives
Which of these is an example of movement along a supply curve,
rather than a shift in supply? -
correct answer ✅A firm produces less hand sanitizer because the
price has decreased.
What are the correct terms for the square red area and then the
triangular blue area in this diagram? -
correct answer ✅producer surplus; deadweight loss.
Which point or points in the following Production Possibilities
Model represent(s) the current maximum production possibilities
given our resource constraints? -
correct answer ✅Points, A, B, and E
, Unit 1: The Basics of Microeconomics
- Milestone Exam Questions &
Answers (Grade A+)
The three fundamental economic questions every society must
answer are: -
correct answer ✅What to produce? How to produce it? Who gets
it?
On the graph below, suppose the price moved from point B to point
A.
Which of the following best explains what happened? -
correct answer ✅The price of the product increased.
Which of the following is an example of the law of demand? -
correct answer ✅The price of apples falls, and the quantity
demanded of apples rises.
Which of the following would cause the change in supply illustrated
in the graph below? -
correct answer ✅Technology improvements are adopted.
The graph below depicts a government intervention of a minimum
price for labor of $9.00 per hour. What is the value now for the
- Milestone Exam Questions &
Answers (Grade A+)
Interest rates rise on your savings account at your bank, and you
decide to save 5% more from your paycheck to take advantage of
the increased rates. Which of the six core principles of the
economic way of thinking does this decision illustrate? -
correct answer ✅People Respond in Predictable Ways to
Incentives
Which of these is an example of movement along a supply curve,
rather than a shift in supply? -
correct answer ✅A firm produces less hand sanitizer because the
price has decreased.
What are the correct terms for the square red area and then the
triangular blue area in this diagram? -
correct answer ✅producer surplus; deadweight loss.
Which point or points in the following Production Possibilities
Model represent(s) the current maximum production possibilities
given our resource constraints? -
correct answer ✅Points, A, B, and E
, Unit 1: The Basics of Microeconomics
- Milestone Exam Questions &
Answers (Grade A+)
The three fundamental economic questions every society must
answer are: -
correct answer ✅What to produce? How to produce it? Who gets
it?
On the graph below, suppose the price moved from point B to point
A.
Which of the following best explains what happened? -
correct answer ✅The price of the product increased.
Which of the following is an example of the law of demand? -
correct answer ✅The price of apples falls, and the quantity
demanded of apples rises.
Which of the following would cause the change in supply illustrated
in the graph below? -
correct answer ✅Technology improvements are adopted.
The graph below depicts a government intervention of a minimum
price for labor of $9.00 per hour. What is the value now for the
