ECON B-251 EXAM 1 Questions And Answers Latest Top Score.
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ECON B-251
Institution
ECON B-251
ECON B-251 EXAM 1 Questions And Answers Latest Top Score.
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 t...
ECON B-251 EXAM 1 Questions And
Answers Latest Top Score.
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
opportunity cost - correct answer. The highest-valued, next-best alternative that must
be sacrificed to obtain something or to satisfy a want
marginal analysis - correct answer. evaluates the consequences of making
incremental changes in the use of their resources
positive economics - correct answer. purely descriptive statements or scientific
predictions- a statement of what is.
normative economics - correct answer. analysis involving value judgements-- what
ought to be
models - correct answer. Simplified representations of the real world used as the
basis for predictions or explanations
three scarcity questions - correct answer. 1. what to produce?
2. how to produce?
3. for whom?
Four factors of production - correct answer. land, labor, capital, entrepreneurship
Two types of capital - correct answer. human (knowledge) and physical (machines)
marginal cost - correct answer. the opportunity cost of producing one more unit of a
good
marginal benefit - correct answer. the additional benefit to a consumer from
consuming one more unit of a good or service
decreasing marginal benefit - correct answer. the maximum amount of money a
consumer is willing to pay for an additional good or service is decreasing.
production efficiency - correct answer. we cannot produce additional amounts of a
good without decreasing the production amount of another product
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