Econ Quiz 1b ANSWERS - EEEEEEEEEEEI Review: Quiz 1b I. 1.5...

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Unformatted text preview: EEEEEEEEEEEI Review: Quiz 1b I. 1.5 Exercised @Queation Score: 1 of 1 pt Test Score: 90.9% [10 of 11 pts) 5 'Wi'lich ofthe following is not tme about economic models? A model is a simplified representation of the real world. A good modelmust be realistic. Models are used to explain and predict human behavior. In comparing two modelsI the simpler one is betterI other things equaL 1.1Exeroiset @Quamhn Score: 1 of 1 pt Test Score: 90.9% [10 of 11 pts) 5 The economic way of thinking will: '4' allow you to make better decisions. help you get rich. lead a person to think in normative terms. have no influence on your decision making. I. 1.3 Exercise 1 ICJZIQueatlnn 5mm: 1 ofl pt Test Score: 911.9% (10 of 11 pts) 5 What is the difference between microeconomics and macroeconomics? Microeconomics examines the big picture while macroeconomics examines Microeconomics is the study ofdecision making undertaken by individuals while macroeconomics looks at the behavior ofthe economy as a whole. Microeconomics deals with positive analysis while macroeconomics deals with normative analysis. Microeconomics lends itselfto empirical analysis while macroeconomics uses the concept of incentives. 1.3Exarcisa-t IgflQufiatlu-n 5mm: 1 of 1 pt Test Score: 911.9% (1:: of 11 pts}. 5 The impact ofthe national debt on the economy‘s unemployl'nent is an example of: irrational economics. V macroeconomics analysis. behavioral economi:s microeconomi: analysis. qflflflflflflflfiflflbw I:&:Iqllfi£tlfll'l 5mm: 1 of 1 pt 1.4 Exercisa1 Test 5mm: 9D.9% [in of 11 puts) 5 Based on the recommendation ofa friend1 you buy a ticket and attend a movie with high expectations. After seeing the movieI you thinkthat it is the worst fllmever made and that it was a complete waste ofmoney. This situation demonstrates that the rationality assumption is false because you were worse off for seeing the movie. has nothing to do with the rationality assumption demonstrates that you behaved irrationally because you didn‘t get enough information prior to attending the movie. V is consistent with rational behavior because you had thought that you were going to like the movie. I. 1.5 Exercise?! ICJJQIIaa-tiol'l 5mm: 1 of 1 pt TastScore: 911.9% [111 of 11 pts}. 5 The "ceteris paribus" assumption means "all people are rationaL" "people respond to incentives." “1" "other things equaL" "more is better." 1.2 Exercise 1 'oflfiflflflflflfiflflbw .CJZIQuastinn 5mm: 1 of 1 pt Test Score: 90.9% (in of 11 pts) I; Economics is: the study of how unlimited resources are allocated to satisfy limited wants. 9 the study ofhow limited resources are allocated to satisfy unlimited wants. the study ofhow the stock market works. the study of money. I TextF’rnblem‘I-a @Quoatlnn 5mm: 9 of 1 pt Test Score: 99.9% (19 of 11 pts} 5 To which of the following househoki—typeifis} does the phrase "unlimited wants and limited resources" apply: I. A low—income household 11. A middle—income household III. A high—income household 3‘5 BothIandJI,butnot]I|I Ionly Honly if I,]I,and]I|I <1 1.1Exercise4 ©Quoatlnn 5mm: 1 of 1 pt Tealfinnm: 90.9% (11:: of 11 puts) 5 Suppose an employer is trying to decide whether or not to hire another worker. Which of the following is not an aspect of the economic way of thinking that would apply in this decision—making process: se If—intere st. rationality. responding to incentives. V' flipping a coin. I. 1.1 Exercise‘l @Quantlnn Score: 1 ofl pt Test Score: 99.9% (19 of 11 pts} 5 The economic way of thinking will: V allow you to make better decisions. help you get rich. lead a person to think in normative terms. have no influence on your decision making. Text Problem 1-5 {éjfluesflon Score: 1 of 1 pt Test Score: 9D.Q% [JD of 11 pts} IE One ofyour classmates, Sally, is a hardworking student, serious about her classes, and conscientious about her grades. Sally is also involved, however, in volunteer activities and an extracurricular sport. Is Sally displaying rational behavior? Yes, she is devoting some of her time to the benefit and well—being of others even ifher grades suffer. No, leisure time is preferred — she should devote all of her time to sports. No, ifshe is serious about grades, all ofher time should be spent studying. Yes, she is using her time allocated among school, studying, sports and volunteer work in a manner she deems best. ...
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This note was uploaded on 02/09/2011 for the course ECON 201 taught by Professor Coomber during the Fall '08 term at Community College of Baltimore County.

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Econ Quiz 1b ANSWERS - EEEEEEEEEEEI Review: Quiz 1b I. 1.5...

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