ECS4862 - Advanced Microeconomics_Final_Milestone.

ECS4862 - Advanced Microeconomics_Final_Milestone. Which of the following is true about the field of 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 commonly broken into Labor Economics and Consumer Economics Economics is a social science that intersects with other fields of study CONCEPT What is Economics? 2 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 Consumer surplus Deadweight loss Producer surplus CONCEPT Market Equilibrium 3 CEOs are limited in making policy changes regarding climate change by all of the following EXCEPT __________. investor support which is linked directly to profits the necessity to think in the long term rather than the short term his/her fiduciary responsibility to the company needing support from the Board of Directors CONCEPT Sustainable Returns--Investor Impact 4 A person who consumes a good without paying for it is known as a(n) __________. free rider rival producer utility maximizer CONCEPT Public Goods, Private Goods, and the “Tragedy of the Commons” 5 Product Price Cost Per Unit Quantity Sold Quantity Produced Opportunity Cost $1.25 $0. Using the data in this table, calculate the firm’s economic profit. -$300 -$200 $300 -$520 $320 $200 CONCEPT Economic Profit 6 If Bundle of Goods A contains two pizzas and three sodas, and Bundle B contains three pizzas and three sodas, then Patrick will select Bundle B based on the principle of __________. transitivity completeness non-satiation utility theory CONCEPT Consumer Choice Theory 7 Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product 0 0 0 1 18 18 2 30 12 3 41 11 4 46 5 If the price of the item is $10.00 per unit and the employees cost $100 each, how many employees should the firm hire to maximize their profit? Two employees Four employees One employee Three employees CONCEPT Output Optimization: Marginal Revenue Product 8 When a business owner uses process mapping, an activity is marked by __________. a circle a box or rectangle a diamond an oval CONCEPT Process Mapping--Efficiency 9 Mariah received a promotion at work and wanted to replace her mobile phone with a more expensive smartphone that she could now afford. The lower-priced cell phone that Mariah no longer wanted to have is an example of which type of good? Inferior good Normal good Veblen good Giffen good CONCEPT Types of Goods 10 Which one of the answers listed is NOT a reason why businesses have been slow to adopt sustainable practices in regard to unemployment? Employment levels follow the business cycle. Businesses might lay off people in order to meet profitability in a given quarter. Sustainable business practices mean larger profits in the long run. Sustainable business practices often seem counterintuitive.