Economics: History and Concepts

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Questions and Answers

What is entrepreneurship?

  • The process of hiring and managing employees
  • The study of economic theories and models
  • The act of buying and selling goods
  • The intentional pursuit of new economical value (correct)

What is the Cost Theory of Value according to the text?

  • The idea that value is estimated based on willingness to pay
  • The belief that value is based on utility and usefulness
  • The theory that value is determined by amount of labor required to produce it
  • Exchange value is determined by total cost of its production (correct)

Who proposed the Labor Theory of Value?

  • Adam Smith
  • Karl Marx (correct)
  • Aristotle
  • John Stuart Mill

What does economics estimate as willingness to pay?

<p>Utility (C)</p> Signup and view all the answers

What is wrong with the business school?

<p>Treating people as utility functions, teaching administration (D)</p> Signup and view all the answers

What did Aristotle understand about value according to the text?

<p>He was the first person to understand value (B)</p> Signup and view all the answers

Which theory suggests that value comes from 'socially necessary labor'?

<p>Subjective Utility Theory (D)</p> Signup and view all the answers

Who laid out 4 logical axioms enabling expected utility to be widely modeled?

<p>Von Neumann and Morgenstern (A)</p> Signup and view all the answers

What does 'diminishing marginal utility' imply?

<p>The more you have of something, the less it's worth (B)</p> Signup and view all the answers

Which theory suggests that we cannot perfectly predict people's behavior?

<p>Subjective Value Theory (C)</p> Signup and view all the answers

What did psychologists attempt to do in the Reproducibility Crisis?

<p>Replicate studies (B)</p> Signup and view all the answers

What is 'utility'?

<p>How useful something is (D)</p> Signup and view all the answers

Who suggested that utility could be treated as a unit of analysis and mathematical models could be derived to compute the maximization of a utility function?

<p>Alfred Marshall (B)</p> Signup and view all the answers

'Bounded rationality' refers to making decisions based on:

<p>Limited information and perception (D)</p> Signup and view all the answers

'As if' theory is associated with which approach to economics?

<p>'Positivist approach' (C)</p> Signup and view all the answers

'Subjective Value Theory' suggests that:

<p>'We value things, They don’t have value' (B)</p> Signup and view all the answers

What is the meaning of 'entrepreneurship' according to the text?

<p>The intentional pursuit of new economic value (B)</p> Signup and view all the answers

What determines the exchange value of a product?

<p>Total cost of its production (A)</p> Signup and view all the answers

What did Aristotle comprehend as the basis for value?

<p>Value coming from socially necessary labor (B)</p> Signup and view all the answers

What is the Labor Theory of Value associated with?

<p>Marx (D)</p> Signup and view all the answers

What is 'utility' estimated as in economics, based on the text?

<p>Willingness to pay (D)</p> Signup and view all the answers

What is 'value' determined by?

<p>Amount of labor required to produce it (B)</p> Signup and view all the answers

What does the Marginal Revolution propose?

<p>Value is determined by the lowest use value that a good's supply can meet (A)</p> Signup and view all the answers

What does Subjective Utility Theory emphasize?

<p>Reality is perceived through a limited lens of perception (B)</p> Signup and view all the answers

What is the problem with 'As if' theory according to the text?

<p>It developed from past behaviors that contradict economists' predictions (A)</p> Signup and view all the answers

What was the outcome of the Reproducibility Crisis according to the text?

<p>Only 40 out of 100 studies could be replicated (A)</p> Signup and view all the answers

What does the Subjective Value Theory suggest?

<p>We value things, but they don’t have inherent value (C)</p> Signup and view all the answers

What did Alfred Marshall suggest about utility?

<p>Utility is still the source of value and it's marginal (D)</p> Signup and view all the answers

What is the focus of Game Theory according to the text?

<p>The study of mathematical models for decision-making and interaction among rational decision-makers (C)</p> Signup and view all the answers

'Bounded rationality' refers to making decisions based on:

<p>Reality perceived through a limited lens of perception and limited information (A)</p> Signup and view all the answers

'Utility' is defined as:

<p>'Usefulness' of something (D)</p> Signup and view all the answers

What does the Marginal Revolution propose regarding diminishing marginal utility?

<p>The more you have of something, the less it's worth (D)</p> Signup and view all the answers

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