econ131chapter1 - Chapter 01 Limits Alternatives and...

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Chapter 01 - Limits, Alternatives, and Choices Chapter 01 Limits, Alternatives, and Choices Multiple Choice Questions 1. For economists, the word "utility" means: A. versatility and flexibility. B. rationality. C. pleasure and satisfaction. D. purposefulness. AACSB: Analytical Skills Bloom’s: Knowledge Learning Objective: 1-1 Topic: Economics; economic perspective 2. In economics, the pleasure, happiness, or satisfaction received from a product is called: A. marginal cost. B. rational outcome. C. status fulfillment. D. utility. AACSB: Analytical Skills Bloom’s: Knowledge Learning Objective: 1-1 Topic: Economics; economic perspective 3. When economists say that people act rationally in their self interest, they mean that individuals: AACSB: Reflective Thinking Skills Bloom’s: Understanding Learning Objective: 1-1 Topic: Economics; economic perspective 1-1
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Chapter 01 - Limits, Alternatives, and Choices 4. According to Emerson: "Want is a growing giant whom the coat of Have was never large enough to cover." According to economists, "Want" exceeds "Have" because: AACSB: Reflective Thinking Skills Bloom’s: Understanding Learning Objective: 1-1 Topic: Economics; economic perspective 5. According to economists, economic self-interest: AACSB: Reflective Thinking Skills Bloom’s: Understanding Learning Objective: 1-1 Topic: Economics; economic perspective 6. When entering a building, Sam diverts his path to go through an open door rather than make the physical effort to open the closed door that is directly in his path. This is an example of: A. irrational behavior. B. a lazy person. C. marginal benefit-marginal cost analysis. D. programmed learning. AACSB: Reflective Thinking Skills Bloom’s: Application Learning Objective: 1-1 Topic: Economics; economic perspective 1-2
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Chapter 01 - Limits, Alternatives, and Choices 7. Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any money on my financial investment." His economist friend points out that in effect he did lose money, because he could have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis in this case incorporates the idea of: AACSB: Analytical Skills Bloom’s: Application Learning Objective: 1-1 Topic: Economics; economic perspective
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