1. Supposedly Irrelevant Factors

Question 1

Traditional economic models make a lot of _____________.

Answer 1

Bad predictions

Question 2

Economics has a core ________ from which everything else follows

Answer 2

Theory

Question 3

What is the core premise of economic theory?

Answer 3

That people choose by optimizing

Question 4

The beliefs upon which Econs make decisions are assumed to be _________.

Answer 4

Unbiased

Question 5

The premise of choosing the best from a limited budget

Answer 5

Constrained optimization

Question 6

Equilibrium

Answer 6

The idea that in competitive markets where prices are free to move up and down, those prices fluctuate so that supply equals demand

Question 7

______ + ______ = _________

Answer 7

Optimization + Equalibrium = Economics

Question 8

Who is the father of modern economic thinking?

Answer 8

Adam Smith

Question 9

What was Adam Smith’s magnum opus?

Answer 9

The wealth of nations

Question 10

What are the factors that traditional economic theory doesn’t rely on, and this results in flawed analyses and decision-making?

Answer 10

Supposedly irrelevant factors