Sophia Microeconomics Unit 1 Milestone Study test with correct answers

What is the study of the behavior of consumers and businesses holistically across an economy? - correct answer Macroeconomics 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? - correct answer Inferior Which answer choice below does NOT influence decision making for the rational consumer? - correct answer Profit maximization 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? - correct answer Shift in demand Identify which statement is a characteristic of long-run for a firm. - correct answer Time period when constraints are most likely to be variable Which choice below is NOT an example of an intermediate good? - correct answer Orange juice sold at a grocery store 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? - correct answer Opportunity cost 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.