ECON 247 PRACTICE SOLUTION TEST 2026
COMPLETE QUESTIONS AND CORRECT
ANSWERS GRADED A+
●● Resources.
Answer: Things used to produce goods and services to satisfy people's
wants.
●● Wants.
Answer: What people would buy if their incomes were unlimited.
●● Microeconomics.
Answer: The study of decisions making undertaken by individuals (or
households) and by firms.
●● Aggregates.
Answer: Total amounts or quantities. Aggregate demand, for example, is
total planned expenditures throughout a nation.
●● Rationality Assumption.
Answer: The assumption that people do not intentionally make decisions
that would leave them worse off.
, ●● Ceteris Paribus Assumption.
Answer: The assumption that nothing changes except the factor of
factors being studied.
●● Behavioral Economics.
Answer: An approach to the study of consumer behavior that emphasizes
psychological limitations and complications that potentially interfere
with rational decision making.
●● Bounded Rationality.
Answer: The hypothesis that people are NEARLY, but not fully, rational,
so that they cannot examine every possible choice available to them but
instead use simple rules of thumb to sort among the alternatives that
happen to occur to them.
●● Positive Economics.
Answer: Analysis that is STRICTLY limited to making either purely
descriptive statements or scientific predictions ; for example, "If A, then
B." A statement of WHAT IS.
●● Normative Economics.
Answer: Analysis involving value judgments about economic policies;
relates to whether outcomes are good or bad. A statement of WHAT
OUGHT TO BE.
COMPLETE QUESTIONS AND CORRECT
ANSWERS GRADED A+
●● Resources.
Answer: Things used to produce goods and services to satisfy people's
wants.
●● Wants.
Answer: What people would buy if their incomes were unlimited.
●● Microeconomics.
Answer: The study of decisions making undertaken by individuals (or
households) and by firms.
●● Aggregates.
Answer: Total amounts or quantities. Aggregate demand, for example, is
total planned expenditures throughout a nation.
●● Rationality Assumption.
Answer: The assumption that people do not intentionally make decisions
that would leave them worse off.
, ●● Ceteris Paribus Assumption.
Answer: The assumption that nothing changes except the factor of
factors being studied.
●● Behavioral Economics.
Answer: An approach to the study of consumer behavior that emphasizes
psychological limitations and complications that potentially interfere
with rational decision making.
●● Bounded Rationality.
Answer: The hypothesis that people are NEARLY, but not fully, rational,
so that they cannot examine every possible choice available to them but
instead use simple rules of thumb to sort among the alternatives that
happen to occur to them.
●● Positive Economics.
Answer: Analysis that is STRICTLY limited to making either purely
descriptive statements or scientific predictions ; for example, "If A, then
B." A statement of WHAT IS.
●● Normative Economics.
Answer: Analysis involving value judgments about economic policies;
relates to whether outcomes are good or bad. A statement of WHAT
OUGHT TO BE.
