ECN 101 Chapter 1| Ryerson University ECN 101
|Ques ons and answers | Updated new
Which of the following describe the concept of ra onal self-interest? (Check all that apply.)
Individuals weigh the costs and benefits of their decisions.,Individuals look for and pursue
opportuni es to increase their u lity.,Individuals allocate their resources to maximize their
sa sfac on.
Recently, you decided to super-size your fries at McDonald's. On the one hand, your decision to
super-size considered the addi onal costs associated with the super-size, including the
addi onal monetary, caloric, and cholesterol intake as well as the extra me you had to wait for
those fries because a new batch was being prepared. On the other hand, you determined that
the extra benefits from super-sizing included a few more mouthfuls of sa sfac on from an
increased por on of fries. The benefits clearly outweighed the costs since you chose to super-
size. Which of the following does this illustrate?
Marginal analysis,Cost-benefit analysis
The scien fic method consists of several elements, including: Blank______.
observing real-world behaviour and outcomes and formula ng a hypothesis based on said
observa ons,con nuing to test the hypothesis against facts,accep ng, rejec ng, and adjus ng a
hypothesis
The discipline that studies the decision-making process of workers, households, firms and
government on an individual basis, rather than as aggregates is known as Blank______.
microeconomics
The economic assump on that human behaviour reflects ra onal self-interest states that
individuals maximize sa sfac on because they Blank______.
weigh the costs and benefits of their decisions
You are shopping for a diamond engagement ring and compare 1/2-carat and 3/4-carat
diamond rings. Which of the following demonstrates marginal analysis?
You compare the life me pleasure of the extra 1/4-carat with the extra cost of the 3/4-carat
rela ve to the 1/4 carat.
The following elements describe parts of the procedure called the (two words): - Observa on of
real-world behaviour and outcomes. - Formula on of a possible explana on of cause and effect
,(hypothesis) based on those observa ons. - A test of this explana on by comparing the
outcomes of specific events to the outcome predicted by the hypothesis. - Acceptance,
rejec on, or modifica on of the hypothesis based on these comparisons.
scien fic,method
(Microeconomics/Macroeconomics) is the discipline of economics concerned with individual
units such as households, firms, and government.
Micro
An aggregate is a collec on of Blank______.
specific economic units treated as if they were one unit
In macroeconomics, a(n) is a collec on of specific economic units treated as if they were one
unit.
aggregate
Posi ve economics is concerned with Blank______, whereas norma ve economics deals with
Blank______.
what is; what should be
Facing trade-offs, opportunity costs, choosing a li;le more or a li;le less, and the influence of
incen ves are key concepts that
pertain to the individual.
The following elements describe parts of the procedure called the (two words): - Observa on of
real-world behaviour and outcomes. - Formula on of a possible explana on of cause and effect
(hypothesis) based on those observa ons. - A test of this explana on by comparing the
outcomes of specific events to the outcome predicted by the hypothesis. - Acceptance,
rejec on, or modifica on of the hypothesis based on these comparisons.
scien fic,method
The highest-valued alterna ve that is given up or sacrificed when choosing to produce or
consume one good over another is referred to as Blank______.
an opportunity cost
(Microeconomics/Macroeconomics) is the discipline of economics concerned with individual
units such as households, firms, and government.
Micro
, Of the 10 key concepts to retain for a life me, those pertaining to the individual alone deal with
issues such as: Blank______.
the cost of making a par cular choice,how choices are influenced by incen ves,scarcity in
rela on to desires,the decision to have a li;le more or a li;le less
Jill is unemployed and decides to spend the day at the spa. Jill's opportunity cost of spending a
day at the spa is equal to Blank______.
the daily spa rate, any other monetary expenses, and the value of the best alterna ve ac vity in
which Jill could be engaged
True or false: Economics relies on the scien fic method, which is unique to economics alone.
FALSE
Norma ve, value-based policy ques ons or statements give rise to Blank______.
controversy or disagreement among economists
In macroeconomics, a(n) is a collec on of specific economic units treated as if they were one
unit.
aggregate
Why is it in our self-interest to economize or pick and choose goods and services that maximize
our sa sfac on?
Because of our limited incomes conflic ng with our insa able wants for goods and services
The disagreement among economists involves Blank______, value-based policy ques ons.
norma ve
As a result of our Blank______ incomes and Blank______ wants, it is in our self-interest to
economize or pick and choose goods and services that maximize our sa sfac on.
limited; insa able
economic analysis concerns what is, whereas economic analysis embodies subjec ve feelings
about what ought to be.
Posi ve,Norma ve
Which of the following combina ons are a;ainable given a consumer's budget line?
|Ques ons and answers | Updated new
Which of the following describe the concept of ra onal self-interest? (Check all that apply.)
Individuals weigh the costs and benefits of their decisions.,Individuals look for and pursue
opportuni es to increase their u lity.,Individuals allocate their resources to maximize their
sa sfac on.
Recently, you decided to super-size your fries at McDonald's. On the one hand, your decision to
super-size considered the addi onal costs associated with the super-size, including the
addi onal monetary, caloric, and cholesterol intake as well as the extra me you had to wait for
those fries because a new batch was being prepared. On the other hand, you determined that
the extra benefits from super-sizing included a few more mouthfuls of sa sfac on from an
increased por on of fries. The benefits clearly outweighed the costs since you chose to super-
size. Which of the following does this illustrate?
Marginal analysis,Cost-benefit analysis
The scien fic method consists of several elements, including: Blank______.
observing real-world behaviour and outcomes and formula ng a hypothesis based on said
observa ons,con nuing to test the hypothesis against facts,accep ng, rejec ng, and adjus ng a
hypothesis
The discipline that studies the decision-making process of workers, households, firms and
government on an individual basis, rather than as aggregates is known as Blank______.
microeconomics
The economic assump on that human behaviour reflects ra onal self-interest states that
individuals maximize sa sfac on because they Blank______.
weigh the costs and benefits of their decisions
You are shopping for a diamond engagement ring and compare 1/2-carat and 3/4-carat
diamond rings. Which of the following demonstrates marginal analysis?
You compare the life me pleasure of the extra 1/4-carat with the extra cost of the 3/4-carat
rela ve to the 1/4 carat.
The following elements describe parts of the procedure called the (two words): - Observa on of
real-world behaviour and outcomes. - Formula on of a possible explana on of cause and effect
,(hypothesis) based on those observa ons. - A test of this explana on by comparing the
outcomes of specific events to the outcome predicted by the hypothesis. - Acceptance,
rejec on, or modifica on of the hypothesis based on these comparisons.
scien fic,method
(Microeconomics/Macroeconomics) is the discipline of economics concerned with individual
units such as households, firms, and government.
Micro
An aggregate is a collec on of Blank______.
specific economic units treated as if they were one unit
In macroeconomics, a(n) is a collec on of specific economic units treated as if they were one
unit.
aggregate
Posi ve economics is concerned with Blank______, whereas norma ve economics deals with
Blank______.
what is; what should be
Facing trade-offs, opportunity costs, choosing a li;le more or a li;le less, and the influence of
incen ves are key concepts that
pertain to the individual.
The following elements describe parts of the procedure called the (two words): - Observa on of
real-world behaviour and outcomes. - Formula on of a possible explana on of cause and effect
(hypothesis) based on those observa ons. - A test of this explana on by comparing the
outcomes of specific events to the outcome predicted by the hypothesis. - Acceptance,
rejec on, or modifica on of the hypothesis based on these comparisons.
scien fic,method
The highest-valued alterna ve that is given up or sacrificed when choosing to produce or
consume one good over another is referred to as Blank______.
an opportunity cost
(Microeconomics/Macroeconomics) is the discipline of economics concerned with individual
units such as households, firms, and government.
Micro
, Of the 10 key concepts to retain for a life me, those pertaining to the individual alone deal with
issues such as: Blank______.
the cost of making a par cular choice,how choices are influenced by incen ves,scarcity in
rela on to desires,the decision to have a li;le more or a li;le less
Jill is unemployed and decides to spend the day at the spa. Jill's opportunity cost of spending a
day at the spa is equal to Blank______.
the daily spa rate, any other monetary expenses, and the value of the best alterna ve ac vity in
which Jill could be engaged
True or false: Economics relies on the scien fic method, which is unique to economics alone.
FALSE
Norma ve, value-based policy ques ons or statements give rise to Blank______.
controversy or disagreement among economists
In macroeconomics, a(n) is a collec on of specific economic units treated as if they were one
unit.
aggregate
Why is it in our self-interest to economize or pick and choose goods and services that maximize
our sa sfac on?
Because of our limited incomes conflic ng with our insa able wants for goods and services
The disagreement among economists involves Blank______, value-based policy ques ons.
norma ve
As a result of our Blank______ incomes and Blank______ wants, it is in our self-interest to
economize or pick and choose goods and services that maximize our sa sfac on.
limited; insa able
economic analysis concerns what is, whereas economic analysis embodies subjec ve feelings
about what ought to be.
Posi ve,Norma ve
Which of the following combina ons are a;ainable given a consumer's budget line?
