ECON 201 Exam | Questions with 100% Correct
Answers | Verified | Latest Update 2026/2027
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Terms in this set (33)
Opportunity Cost The value of what must be foregone in order to
undertake an activity is the ________cost of that
activity.
Learning more about economic can help us make better decisions even if most
models people don't consciously use economic models to
make decisions.
Economists believe that people never have enough time, money, or energy to do
everything or have everything they want.
When assessing the costs and as absolute dollar amounts rather than proportions.
benefits associated with taking an
action, it is generally best to
consider costs and benefits
If someone is rational, then they have well-defined goals that they try to fulfill as
best they can.
When deciding whether to take an ignore the implicit cost of the action
action, one common decision pitfall
is to Blank______.
The economic surplus of an action is the benefit of taking an action minus its cost.
, When deciding whether to take an should be ignored.
action, sunk costs
The value of what must be foregone opportunity cost.
in order to undertake an activity is
known as
sunk or sunken a/n cost is a cost that is beyond recovery at the
moment a decision is made.
useful even Economic models are ______ if people do not
consciously weigh costs and benefits when making
decisions.
marginal benefit The increase in total benefit that results from
carrying out one additional unit of the activity is
called ______.
One common decision pitfall is to measure costs and benefits as proportions rather
______ than absolute dollar amounts
A principle that predicts how people positive economic principle.
will behave is called a(n):
When making decisions, people fail to consider implicit costs
sometimes make mistakes because
they _____
Macroeconomics is the study of the performance of national economies and the
policies that governments use to try to improve
that performance.
Answers | Verified | Latest Update 2026/2027
Save
Terms in this set (33)
Opportunity Cost The value of what must be foregone in order to
undertake an activity is the ________cost of that
activity.
Learning more about economic can help us make better decisions even if most
models people don't consciously use economic models to
make decisions.
Economists believe that people never have enough time, money, or energy to do
everything or have everything they want.
When assessing the costs and as absolute dollar amounts rather than proportions.
benefits associated with taking an
action, it is generally best to
consider costs and benefits
If someone is rational, then they have well-defined goals that they try to fulfill as
best they can.
When deciding whether to take an ignore the implicit cost of the action
action, one common decision pitfall
is to Blank______.
The economic surplus of an action is the benefit of taking an action minus its cost.
, When deciding whether to take an should be ignored.
action, sunk costs
The value of what must be foregone opportunity cost.
in order to undertake an activity is
known as
sunk or sunken a/n cost is a cost that is beyond recovery at the
moment a decision is made.
useful even Economic models are ______ if people do not
consciously weigh costs and benefits when making
decisions.
marginal benefit The increase in total benefit that results from
carrying out one additional unit of the activity is
called ______.
One common decision pitfall is to measure costs and benefits as proportions rather
______ than absolute dollar amounts
A principle that predicts how people positive economic principle.
will behave is called a(n):
When making decisions, people fail to consider implicit costs
sometimes make mistakes because
they _____
Macroeconomics is the study of the performance of national economies and the
policies that governments use to try to improve
that performance.
