BU 520
Integrated Economics & Decision
Making
LATEST FINALS REVIEW
Q&S
©2024/2025
,1. Which economic theory primarily studies decision-making
under conditions of uncertainty?
- A) Behavioral Economics
- B) Game Theory
- C) Keynesian Economics
- D) Classical Economics
Answer: B) Game Theory
Rationale: Game theory focuses on the strategic interaction
between decision-makers where uncertainty and interdependence
are key factors.
2. Which of the following is considered a non-price determinant
of demand in consumer markets?
- A) The price of the product
- B) Consumer preferences
- C) Cost of production
- D) Technological advancement
Answer: B) Consumer preferences
©2024/2025
, Rationale: Non-price determinants of demand include factors
like consumer preferences, which can shift the demand curve
independently of the product's own price.
3. In the context of decision trees, what does a 'leaf node'
represent?
- A) A originating decision
- B) A potential outcome or end result
- C) A branch in the decision process
- D) A root cause analysis
Answer: B) A potential outcome or end result
Rationale: Leaf nodes represent the final outcomes in decision
trees, encapsulating the results of a series of decisions.
4. Which of the following strategies is most aligned with the
concept of risk aversion in economic decision-making?
- A) Maximizing potential gains
- B) Minimizing potential losses
- C) Pursuing high-risk, high-reward investments
- D) Ignoring volatility to focus on mean returns
Answer: B) Minimizing potential losses
©2024/2025
Integrated Economics & Decision
Making
LATEST FINALS REVIEW
Q&S
©2024/2025
,1. Which economic theory primarily studies decision-making
under conditions of uncertainty?
- A) Behavioral Economics
- B) Game Theory
- C) Keynesian Economics
- D) Classical Economics
Answer: B) Game Theory
Rationale: Game theory focuses on the strategic interaction
between decision-makers where uncertainty and interdependence
are key factors.
2. Which of the following is considered a non-price determinant
of demand in consumer markets?
- A) The price of the product
- B) Consumer preferences
- C) Cost of production
- D) Technological advancement
Answer: B) Consumer preferences
©2024/2025
, Rationale: Non-price determinants of demand include factors
like consumer preferences, which can shift the demand curve
independently of the product's own price.
3. In the context of decision trees, what does a 'leaf node'
represent?
- A) A originating decision
- B) A potential outcome or end result
- C) A branch in the decision process
- D) A root cause analysis
Answer: B) A potential outcome or end result
Rationale: Leaf nodes represent the final outcomes in decision
trees, encapsulating the results of a series of decisions.
4. Which of the following strategies is most aligned with the
concept of risk aversion in economic decision-making?
- A) Maximizing potential gains
- B) Minimizing potential losses
- C) Pursuing high-risk, high-reward investments
- D) Ignoring volatility to focus on mean returns
Answer: B) Minimizing potential losses
©2024/2025
