ECON B-251 EXAM 1 2025/2026 Exam
Questions and Verified Answers |
Already Graded A+
economics - 🧠 ANSWER ✔✔the study of satisfying unlimited wants by
utilizing limited resources
scarcity - 🧠 ANSWER ✔✔unlimited wants and limited resources
the economic problem - 🧠 ANSWER ✔✔deals with the problem of scarcity
Microeconomics - 🧠 ANSWER ✔✔studies decisions by individual firms and
governments
Macroeconomics - 🧠 ANSWER ✔✔studies decisions made or actions
taken by the entire economy
ex. inflation, unemployment, GDP
,rationality assumption - 🧠 ANSWER ✔✔assumes that people do not
intentionally make decisions that would leave them worse off.
bounded rationality - 🧠 ANSWER ✔✔assumes peoples rationality is
constrained because they do not have full information
prospect theory - 🧠 ANSWER ✔✔demonstrates how people react
differently to potential loss and potential gain.
maximizer - 🧠 ANSWER ✔✔try to make optimal decisions based on the
rationality assumption
satisficer - 🧠 ANSWER ✔✔try to find a "good enough" solution based on
bounded rationality
self-interest - 🧠 ANSWER ✔✔pursuit of one's own goals. Maximize
happiness.
social-interest - 🧠 ANSWER ✔✔choices that are best for society as a
whole
tradeoff - 🧠 ANSWER ✔✔when we choose one thing, we give up
something else
, non-strategic - 🧠 ANSWER ✔✔decisions based on an individual's or firm's
own costs and benefits
strategic - 🧠 ANSWER ✔✔decisions based on others' decisions as well as
one's cost and benefits
opportunity cost - 🧠 ANSWER ✔✔The highest-valued, next-best alternative
that must be sacrificed to obtain something or to satisfy a want
marginal analysis - 🧠 ANSWER ✔✔evaluates the consequences of making
incremental changes in the use of their resources
positive economics - 🧠 ANSWER ✔✔purely descriptive statements or
scientific predictions- a statement of what is.
normative economics - 🧠 ANSWER ✔✔analysis involving value
judgements-- what ought to be
models - 🧠 ANSWER ✔✔Simplified representations of the real world used
as the basis for predictions or explanations
three scarcity questions - 🧠 ANSWER ✔✔1. what to produce?
2. how to produce?
3. for whom?
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions and Verified Answers |
Already Graded A+
economics - 🧠 ANSWER ✔✔the study of satisfying unlimited wants by
utilizing limited resources
scarcity - 🧠 ANSWER ✔✔unlimited wants and limited resources
the economic problem - 🧠 ANSWER ✔✔deals with the problem of scarcity
Microeconomics - 🧠 ANSWER ✔✔studies decisions by individual firms and
governments
Macroeconomics - 🧠 ANSWER ✔✔studies decisions made or actions
taken by the entire economy
ex. inflation, unemployment, GDP
,rationality assumption - 🧠 ANSWER ✔✔assumes that people do not
intentionally make decisions that would leave them worse off.
bounded rationality - 🧠 ANSWER ✔✔assumes peoples rationality is
constrained because they do not have full information
prospect theory - 🧠 ANSWER ✔✔demonstrates how people react
differently to potential loss and potential gain.
maximizer - 🧠 ANSWER ✔✔try to make optimal decisions based on the
rationality assumption
satisficer - 🧠 ANSWER ✔✔try to find a "good enough" solution based on
bounded rationality
self-interest - 🧠 ANSWER ✔✔pursuit of one's own goals. Maximize
happiness.
social-interest - 🧠 ANSWER ✔✔choices that are best for society as a
whole
tradeoff - 🧠 ANSWER ✔✔when we choose one thing, we give up
something else
, non-strategic - 🧠 ANSWER ✔✔decisions based on an individual's or firm's
own costs and benefits
strategic - 🧠 ANSWER ✔✔decisions based on others' decisions as well as
one's cost and benefits
opportunity cost - 🧠 ANSWER ✔✔The highest-valued, next-best alternative
that must be sacrificed to obtain something or to satisfy a want
marginal analysis - 🧠 ANSWER ✔✔evaluates the consequences of making
incremental changes in the use of their resources
positive economics - 🧠 ANSWER ✔✔purely descriptive statements or
scientific predictions- a statement of what is.
normative economics - 🧠 ANSWER ✔✔analysis involving value
judgements-- what ought to be
models - 🧠 ANSWER ✔✔Simplified representations of the real world used
as the basis for predictions or explanations
three scarcity questions - 🧠 ANSWER ✔✔1. what to produce?
2. how to produce?
3. for whom?
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
