32 Questions
What is entrepreneurship?
The intentional pursuit of new economical value
What is the Cost Theory of Value according to the text?
Exchange value is determined by total cost of its production
Who proposed the Labor Theory of Value?
Karl Marx
What does economics estimate as willingness to pay?
Utility
What is wrong with the business school?
Treating people as utility functions, teaching administration
What did Aristotle understand about value according to the text?
He was the first person to understand value
Which theory suggests that value comes from 'socially necessary labor'?
Subjective Utility Theory
Who laid out 4 logical axioms enabling expected utility to be widely modeled?
Von Neumann and Morgenstern
What does 'diminishing marginal utility' imply?
The more you have of something, the less it's worth
Which theory suggests that we cannot perfectly predict people's behavior?
Subjective Value Theory
What did psychologists attempt to do in the Reproducibility Crisis?
Replicate studies
What is 'utility'?
How useful something is
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?
Alfred Marshall
'Bounded rationality' refers to making decisions based on:
Limited information and perception
'As if' theory is associated with which approach to economics?
'Positivist approach'
'Subjective Value Theory' suggests that:
'We value things, They don’t have value'
What is the meaning of 'entrepreneurship' according to the text?
The intentional pursuit of new economic value
What determines the exchange value of a product?
Total cost of its production
What did Aristotle comprehend as the basis for value?
Value coming from socially necessary labor
What is the Labor Theory of Value associated with?
Marx
What is 'utility' estimated as in economics, based on the text?
Willingness to pay
What is 'value' determined by?
Amount of labor required to produce it
What does the Marginal Revolution propose?
Value is determined by the lowest use value that a good's supply can meet
What does Subjective Utility Theory emphasize?
Reality is perceived through a limited lens of perception
What is the problem with 'As if' theory according to the text?
It developed from past behaviors that contradict economists' predictions
What was the outcome of the Reproducibility Crisis according to the text?
Only 40 out of 100 studies could be replicated
What does the Subjective Value Theory suggest?
We value things, but they don’t have inherent value
What did Alfred Marshall suggest about utility?
Utility is still the source of value and it's marginal
What is the focus of Game Theory according to the text?
The study of mathematical models for decision-making and interaction among rational decision-makers
'Bounded rationality' refers to making decisions based on:
Reality perceived through a limited lens of perception and limited information
'Utility' is defined as:
'Usefulness' of something
What does the Marginal Revolution propose regarding diminishing marginal utility?
The more you have of something, the less it's worth
Test your knowledge about the history and fundamental concepts of economics with this quiz covering topics like economy, economic growth, entrepreneurship, and value theory.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
