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ECON B-251 EXAM 1 QUESTIONS WITH 1005 CORRECT ANSWERS
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ECON B-251 EXAM 1 QUESTIONS WITH 1005 CORRECT ANSWERS
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ECON B-251 EXAM 1 QUESTIONS WITH1005 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
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