Microeconomics Unit 1 Sophia Exam Questions With Correct Answers

Microeconomics Unit 1 Sophia Exam Questions With Correct Answers Which of the following examples is something economists study? - CORRECT ANSWER What factors affect gasoline prices over time. Which of the following is the best example of the core principle of economics which states that "People Make Choices"? - CORRECT ANSWER You know that staying up late on a weekday makes you tired the next day, but you stay up anyway. According to the definition of an economy, which of the following would be considered to be an economy? - CORRECT ANSWER Canada Microeconomics focuses mainly on the study of __________. - CORRECT ANSWER markets In the Production Possibilities Model below, what does Point W represent? (where the number of pools and snowblowers meet) - CORRECT ANSWER Current idle resources In the following Production Possibilities table for snow blowers and swimming pools, what is the opportunity cost of selecting Choice C instead of Choice B? - CORRECT ANSWER 500 snow blowers Which of the following is a true statement regarding cost-benefit analysis? - CORRECT ANSWER When conducting a cost-benefit analysis, non-monetary costs and benefits should be given a monetary value when possible to make comparison easier. What makes a cost-benefit analysis different from a simple pro/con list? - CORRECT ANSWER The use of monetary values in the analysis can make the decision more precise. When using cost-benefit analysis, sometimes you are still undecided after comparing the dollar value of total costs to the dollar value of total benefits. Which of these actions would be best to do next? - CORRECT ANSWER Consider the costs and benefits that do not have a monetary value assigned, as well as your own experience, and other relevant factors in making the decision. Below is the circular flow diagram of the resource market. Select the correct term to fill in the blank. - CORRECT ANSWER Labor What is the economic system called in which property rights are assigned to the government? - CORRECT ANSWER Socialism Which of the following statements about demand is true? - CORRECT ANSWER For demand to exist, both willingness and ability must occur. Which of the following is an example of the law of demand? - CORRECT ANSWER The price of fresh fruit doubles, and many people can't afford to purchase it, so quantity demanded falls. What is being illustrated by the red arrow in the following graph? - CORRECT ANSWER A decrease in demand A major league team's winning streak puts them on top of the rankings, and sales of team jerseys in their city increase. How would this event be illustrated in a graph for team jerseys? - CORRECT ANSWER As a right (outward) change in demand On the graph below, suppose the price moved from point A to point B. Which of the following best explains what happened? - CORRECT ANSWER Buyers expect the product's price to fall in the near future