ECON B-251 EXAM 1 Updated Questions and
Verified Answers/ Complete Solutions with Rationales
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TERMS IN THIS SET (73) QUESTIONS VERIFIED ANSWERS
1. economics the study of satisfying unlimited wants
by utilizing limited resources
2. scarcity unlimited wants and limited resources
3. the economic problem deals with the problem of scarcity
4. Microeconomics studies decisions by individual firms
and governments
5. Macroeconomics studies decisions made or actions taken
by the entire economy
ex. inflation, unemployment, GDP
6. rationality assumption assumes that people do not
intentionally make decisions that would
leave them worse off.
7. bounded rationality assumes peoples rationality is
, constrained because they do not have
full information
8. prospect theory demonstrates how people react
differently to potential loss and
potential gain.
9. maximizer try to make optimal decisions based on
the rationality assumption
10. satisficer try to find a "good enough" solution
based on bounded rationality
11. self-interest pursuit of one's own goals. Maximize
happiness.
12. social-interest choices that are best for society as a
whole
13. tradeoff when we choose one thing, we give up
something else
14. non-strategic decisions based on an individual's or
firm's own costs and benefits
15. strategic decisions based on others' decisions as
well as one's cost and benefits
16. opportunity cost The highest-valued, next-best
alternative that must be sacrificed to
obtain something or to satisfy a want
17. marginal analysis evaluates the consequences of making
Verified Answers/ Complete Solutions with Rationales
|Get It 100% Accurate!! Already Passed!!
TERMS IN THIS SET (73) QUESTIONS VERIFIED ANSWERS
1. economics the study of satisfying unlimited wants
by utilizing limited resources
2. scarcity unlimited wants and limited resources
3. the economic problem deals with the problem of scarcity
4. Microeconomics studies decisions by individual firms
and governments
5. Macroeconomics studies decisions made or actions taken
by the entire economy
ex. inflation, unemployment, GDP
6. rationality assumption assumes that people do not
intentionally make decisions that would
leave them worse off.
7. bounded rationality assumes peoples rationality is
, constrained because they do not have
full information
8. prospect theory demonstrates how people react
differently to potential loss and
potential gain.
9. maximizer try to make optimal decisions based on
the rationality assumption
10. satisficer try to find a "good enough" solution
based on bounded rationality
11. self-interest pursuit of one's own goals. Maximize
happiness.
12. social-interest choices that are best for society as a
whole
13. tradeoff when we choose one thing, we give up
something else
14. non-strategic decisions based on an individual's or
firm's own costs and benefits
15. strategic decisions based on others' decisions as
well as one's cost and benefits
16. opportunity cost The highest-valued, next-best
alternative that must be sacrificed to
obtain something or to satisfy a want
17. marginal analysis evaluates the consequences of making
