EKN 110 CHAPTER 1 CORRECT
100%
Economics - ANSWERStudy of how individuals, businesses and institutions make
choices, to optimise their level of satisfaction under conditions of scarcity
Scarcity - ANSWERLimited goods and services as well as limited time
Marginal Analysis - ANSWERCompares marginal benefits & costs
Benefit: perceived pleasure and utility
Theories, Principles and Models - ANSWERScientific method -
Economic Principles - useful in analysing economic behaviour and understanding
how the economy operates. Generalisation, Other-things-equal assumption and
Graphical Representation.
Macroeconomics - ANSWERexamines either the whole economy or basic
subdivisions. Governments, households & business sectors. Inflation and
unemployment data.
Microeconomics - ANSWERdeals with individual units. Person, household, firm or
industry.
Opportunity Cost - ANSWERValue of the next best alternative that is forfeited to
undertake the activity
Rational Behaviour - ANSWERself-interest. Desire to maximise level of
satisfaction/utility
Utility - ANSWERpleasure, happiness or satisfaction obtained from consuming a
good or service
Rational Consumer and Producer - ANSWERConsumer:
greatest possible U with unlimited wants/needs & certain budget constraints
Producer:
max profit with cost constraints and certain production techniques
100%
Economics - ANSWERStudy of how individuals, businesses and institutions make
choices, to optimise their level of satisfaction under conditions of scarcity
Scarcity - ANSWERLimited goods and services as well as limited time
Marginal Analysis - ANSWERCompares marginal benefits & costs
Benefit: perceived pleasure and utility
Theories, Principles and Models - ANSWERScientific method -
Economic Principles - useful in analysing economic behaviour and understanding
how the economy operates. Generalisation, Other-things-equal assumption and
Graphical Representation.
Macroeconomics - ANSWERexamines either the whole economy or basic
subdivisions. Governments, households & business sectors. Inflation and
unemployment data.
Microeconomics - ANSWERdeals with individual units. Person, household, firm or
industry.
Opportunity Cost - ANSWERValue of the next best alternative that is forfeited to
undertake the activity
Rational Behaviour - ANSWERself-interest. Desire to maximise level of
satisfaction/utility
Utility - ANSWERpleasure, happiness or satisfaction obtained from consuming a
good or service
Rational Consumer and Producer - ANSWERConsumer:
greatest possible U with unlimited wants/needs & certain budget constraints
Producer:
max profit with cost constraints and certain production techniques
