ECON B-251 EXAM 1 QUESTIONS
WITH CORRECT ANSWERS
economics |- |CORRECT |ANSWER✔✔-the |study |of |satisfying |unlimited |wants |by |utilizing |limited |
resources
scarcity |- |CORRECT |ANSWER✔✔-unlimited |wants |and |limited |resources
the |economic |problem |- |CORRECT |ANSWER✔✔-deals |with |the |problem |of |scarcity
Microeconomics |- |CORRECT |ANSWER✔✔-studies |decisions |by |individual |firms |and |
governments
Macroeconomics |- |CORRECT |ANSWER✔✔-studies |decisions |made |or |actions |taken |by |the |
entire |economy |
ex. |inflation, |unemployment, |GDP
rationality |assumption |- |CORRECT |ANSWER✔✔-assumes |that |people |do |not |intentionally |
make |decisions |that |would |leave |them |worse |off.
bounded |rationality |- |CORRECT |ANSWER✔✔-assumes |peoples |rationality |is |constrained |
because |they |do |not |have |full |information
prospect |theory |- |CORRECT |ANSWER✔✔-demonstrates |how |people |react |differently |to |
potential |loss |and |potential |gain.
maximizer |- |CORRECT |ANSWER✔✔-try |to |make |optimal |decisions |based |on |the |rationality |
assumption
, satisficer |- |CORRECT |ANSWER✔✔-try |to |find |a |"good |enough" |solution |based |on |bounded |
rationality
self-interest |- |CORRECT |ANSWER✔✔-pursuit |of |one's |own |goals. |Maximize |happiness.
social-interest |- |CORRECT |ANSWER✔✔-choices |that |are |best |for |society |as |a |whole
tradeoff |- |CORRECT |ANSWER✔✔-when |we |choose |one |thing, |we |give |up |something |else
non-strategic |- |CORRECT |ANSWER✔✔-decisions |based |on |an |individual's |or |firm's |own |costs |
and |benefits
strategic |- |CORRECT |ANSWER✔✔-decisions |based |on |others' |decisions |as |well |as |one's |cost |
and |benefits
opportunity |cost |- |CORRECT |ANSWER✔✔-The |highest-valued, |next-best |alternative |that |must |
be |sacrificed |to |obtain |something |or |to |satisfy |a |want
marginal |analysis |- |CORRECT |ANSWER✔✔-evaluates |the |consequences |of |making |incremental |
changes |in |the |use |of |their |resources
positive |economics |- |CORRECT |ANSWER✔✔-purely |descriptive |statements |or |scientific |
predictions- |a |statement |of |what |is.
normative |economics |- |CORRECT |ANSWER✔✔-analysis |involving |value |judgements-- |what |
ought |to |be
WITH CORRECT ANSWERS
economics |- |CORRECT |ANSWER✔✔-the |study |of |satisfying |unlimited |wants |by |utilizing |limited |
resources
scarcity |- |CORRECT |ANSWER✔✔-unlimited |wants |and |limited |resources
the |economic |problem |- |CORRECT |ANSWER✔✔-deals |with |the |problem |of |scarcity
Microeconomics |- |CORRECT |ANSWER✔✔-studies |decisions |by |individual |firms |and |
governments
Macroeconomics |- |CORRECT |ANSWER✔✔-studies |decisions |made |or |actions |taken |by |the |
entire |economy |
ex. |inflation, |unemployment, |GDP
rationality |assumption |- |CORRECT |ANSWER✔✔-assumes |that |people |do |not |intentionally |
make |decisions |that |would |leave |them |worse |off.
bounded |rationality |- |CORRECT |ANSWER✔✔-assumes |peoples |rationality |is |constrained |
because |they |do |not |have |full |information
prospect |theory |- |CORRECT |ANSWER✔✔-demonstrates |how |people |react |differently |to |
potential |loss |and |potential |gain.
maximizer |- |CORRECT |ANSWER✔✔-try |to |make |optimal |decisions |based |on |the |rationality |
assumption
, satisficer |- |CORRECT |ANSWER✔✔-try |to |find |a |"good |enough" |solution |based |on |bounded |
rationality
self-interest |- |CORRECT |ANSWER✔✔-pursuit |of |one's |own |goals. |Maximize |happiness.
social-interest |- |CORRECT |ANSWER✔✔-choices |that |are |best |for |society |as |a |whole
tradeoff |- |CORRECT |ANSWER✔✔-when |we |choose |one |thing, |we |give |up |something |else
non-strategic |- |CORRECT |ANSWER✔✔-decisions |based |on |an |individual's |or |firm's |own |costs |
and |benefits
strategic |- |CORRECT |ANSWER✔✔-decisions |based |on |others' |decisions |as |well |as |one's |cost |
and |benefits
opportunity |cost |- |CORRECT |ANSWER✔✔-The |highest-valued, |next-best |alternative |that |must |
be |sacrificed |to |obtain |something |or |to |satisfy |a |want
marginal |analysis |- |CORRECT |ANSWER✔✔-evaluates |the |consequences |of |making |incremental |
changes |in |the |use |of |their |resources
positive |economics |- |CORRECT |ANSWER✔✔-purely |descriptive |statements |or |scientific |
predictions- |a |statement |of |what |is.
normative |economics |- |CORRECT |ANSWER✔✔-analysis |involving |value |judgements-- |what |
ought |to |be
