FIN /
320F
/ /
Exam
/ //
1 Study Set Questions With Correct Answers
// // // // // //
Humans /
/are /
/evaluative: /
/they /
/evaluate /
/potential /
/courses /
/of /
/action /
/by /
/considering /
/the /
/positive //and //negative //consequences //of //their //actions //- //correct //answer(s) //✔✔ //Incentives
We /
/play /
/many /
/different /
/roles /
/in /
/our /
/daily /
/lives: /
/student, /
/mentor, /
/husband, /
/wife, /
,/significant /
/other, /
/worker, /
/supervisor, /
/family /
/member, /
/friend, /
/citizen, //customer, //and //more! //In //these //different //roles //we //make //many //decisions //and //seek
//to //maximize //our //overall //welfare //resulting //from //these //cumulative //decisions
Limited /
/Resources: /
/Time. /
/Wealth, /
/information, //knowledge, //- //correct //answer(s) //✔✔ //Humans //are //Imperfectly //Maximizing
___ //motivate //humans //to //take //a //course //of //action
Wealth, //Family, //Prestige, //Self-
Worth //and //Spirituality //- //correct //answer(s) //✔✔ //Positive //incentives
___ //motivate //humans //to //avoid //taking //a //course //of //action
Legal /
/Sanctions. /
/Loss /
/of /
/Money, //Social //Sanctions, //Physical //Sanctions //- //correct //answer(s) //✔✔ //Negative //incentives
Humans, /
/as /
/best /
,/they /
/can, /
/seek /
/to /
/maximize /
/their /
/welfare; /
/however, /
/humans /
/lack /
/the /
/ability /
/to //get, //absorb, //or //understand //all //information //- //correct //answer(s) //✔✔ //Imperfections
Physical /
/or /
/intangible /
/assets /
/that /
/can /
/be /
/used //to //accomplish //a //goal. //___ //are //limited //and //decision //makers //are //also //constrained //in
//their //decision //making //by //the //resources //available //- //correct //answer(s) //✔✔ //Resources
Despite /
/their /
/limits /
/humans /
/operate /
/in /
/creative /
/ways /
/to /
/expand /
/their /
/set /
, /of /
/positive /
/incentives /
/and /
/minimize //the //impact //of //negative //incentives //- //correct //answer(s) //✔✔ //Resourcefulness
The /
/tendency /
/to /
/process /
/information /
/by /
/looking /
/for, /
/or /
/interpreting //information //that //is //consistent //with //one's //existing //beliefs //- //correct //answer(s)
//✔✔ //Confirmation //Bias
The /
/production, /
/distribution /
/and //consumption //of //economic //assets //- //correct //answer(s) //✔✔ //Economic //activity
Assets /
/functioning /
/as /
/stores /
/of /
/value /
/and /
/over /
/which /
/ownership /
/rights /
/are /
320F
/ /
Exam
/ //
1 Study Set Questions With Correct Answers
// // // // // //
Humans /
/are /
/evaluative: /
/they /
/evaluate /
/potential /
/courses /
/of /
/action /
/by /
/considering /
/the /
/positive //and //negative //consequences //of //their //actions //- //correct //answer(s) //✔✔ //Incentives
We /
/play /
/many /
/different /
/roles /
/in /
/our /
/daily /
/lives: /
/student, /
/mentor, /
/husband, /
/wife, /
,/significant /
/other, /
/worker, /
/supervisor, /
/family /
/member, /
/friend, /
/citizen, //customer, //and //more! //In //these //different //roles //we //make //many //decisions //and //seek
//to //maximize //our //overall //welfare //resulting //from //these //cumulative //decisions
Limited /
/Resources: /
/Time. /
/Wealth, /
/information, //knowledge, //- //correct //answer(s) //✔✔ //Humans //are //Imperfectly //Maximizing
___ //motivate //humans //to //take //a //course //of //action
Wealth, //Family, //Prestige, //Self-
Worth //and //Spirituality //- //correct //answer(s) //✔✔ //Positive //incentives
___ //motivate //humans //to //avoid //taking //a //course //of //action
Legal /
/Sanctions. /
/Loss /
/of /
/Money, //Social //Sanctions, //Physical //Sanctions //- //correct //answer(s) //✔✔ //Negative //incentives
Humans, /
/as /
/best /
,/they /
/can, /
/seek /
/to /
/maximize /
/their /
/welfare; /
/however, /
/humans /
/lack /
/the /
/ability /
/to //get, //absorb, //or //understand //all //information //- //correct //answer(s) //✔✔ //Imperfections
Physical /
/or /
/intangible /
/assets /
/that /
/can /
/be /
/used //to //accomplish //a //goal. //___ //are //limited //and //decision //makers //are //also //constrained //in
//their //decision //making //by //the //resources //available //- //correct //answer(s) //✔✔ //Resources
Despite /
/their /
/limits /
/humans /
/operate /
/in /
/creative /
/ways /
/to /
/expand /
/their /
/set /
, /of /
/positive /
/incentives /
/and /
/minimize //the //impact //of //negative //incentives //- //correct //answer(s) //✔✔ //Resourcefulness
The /
/tendency /
/to /
/process /
/information /
/by /
/looking /
/for, /
/or /
/interpreting //information //that //is //consistent //with //one's //existing //beliefs //- //correct //answer(s)
//✔✔ //Confirmation //Bias
The /
/production, /
/distribution /
/and //consumption //of //economic //assets //- //correct //answer(s) //✔✔ //Economic //activity
Assets /
/functioning /
/as /
/stores /
/of /
/value /
/and /
/over /
/which /
/ownership /
/rights /
/are /
