AGEC 203 Past Exam Questions And Answers 2022/2023

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Economics is primarily the study of... agents' choices and their impact on society In economics, scarcity refers to the situation of... having more wants than the amount of available resource... s Statement true about optimization economic agents who optimize attempt to choose the best feasible option, given the information that they have A consumer has $50 to spend. He has to decide between buying two goods: magazines priced at $5 each and DVDs priced at $10 each. Which combinations of the 2 goods will exactly satisfy his budget constraint? 2 magazines and 4 DVDs The best alternative use of a resource is referred to as its... opportunity cost Statement true about an equilibrium.. in equilibrium, all economic agents are choosing the best feasible option simultaneously Economic reasoning allows economic agents to make decisions.. by comparing the costs and benefits of various options Differentiates between a model and a hypothesis.. a model is a simplified representation of reality, whereas a hypothesis is a models predictions A model's predictions are referred to as.. hypotheses Empiricism refers to the process of.. testing ideas using data An experiment refers to.. a controlled method of investigating causal relationships among variables What is optimization? choosing the best option from a set of alternatives Correlation vs causation Correlation arises when there is causation and can also arise even when there is no causation An omitted variable is a variable that.. has been left out, and if included, would explain why the variables considered in a study are correlated. Optimization using marginal analysis (optimization in differences) analyzes.. the change in the net benefits resulting form a shift from one alternative to another If Project A has a cost of $5 and a provides a benefit of $10, and Project B has [Show More]

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