Macroeconomics EC112 |COMPREHENSIVE
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Terms in this set (138)
Technological progress has made it d
possible for firms such as Apple
and Alivecor to develop small
electronic devices, including
smartwatches, smartphones, and
products that can be attached to
the smartwatches and smartphones,
to serve consumers who have
become more health conscious and
wish to monitor various health
conditions. These firms are reacting
to which of the three key economic
ideas?
A) firms attempt to maximize
revenues
B) optimal decisions are made at
the margin
C) people are rational
D) people respond to economic
incentives
,The term "market" in economics c
refers to ______________
A) a place where money changes
hands.
B) a legal institution where
exchange can take place.
C) a group of buyers and sellers of
a product and the arrangement by
which they come together to trade.
D) an organization which sells
goods and services.
Which of the following best b
describes an assumption
economists make about human
behavior?
A) They assume that individuals act
rationally all the time in all
circumstances.
B) They assume that rational
behavior is useful in explaining
choices people make even though
people may not behave rationally
all the time.
C) They assume that people take
into account the question of
fairness in all decisions they make.
D) They assume that individuals act
randomly.
,1. In the first six months of 2003, b
branches of Commerce Bank in
New York City were robbed 14
times. The New York City Police
recommended steps the bank
could take to deter robberies,
including the installation of plastic
barriers called "bandit barriers." The
police were surprised the bank did
not take their advice. According to
a deputy commissioner of police,
"Commerce does very little of what
we recommend. They've told our
detectives they have no interest in
ever putting in the barriers."
It would seem that Commerce Bank
would have a strong incentive to
install "bandit barriers" to deter
robberies. Why wouldn't they do it?
A) The banks would rather delay
installation of any theft deterring
equipment in anticipation of new,
lower-cost innovations in the
security devices market.
B) The banks must have weighed
the cost of installing bandit barriers
against the benefits and decided
that they have "no interest in
, Economics promotes which of the d
following as the way to make the
best decision?
A) Continue an enjoyable activity as
long as you do not have to pay for
it.
B) Continue an enjoyable activity
until it is no longer enjoyable.
C) Continue an enjoyable activity
until you cannot afford to pursue it.
D) Continue an enjoyable activity
up to the point where its marginal
benefit equals its marginal cost.
Which of the following is an d
example of a "how much" decision?
A) Octavia is debating whether to
buy a pair of Jimmy Choo shoes or
Steve Madden boots.
B) Humberto has taken a second
job to earn money to buy a Harley-
Davidson SuperLow Sportster.
C) You plan on going to Las Vegas
for your birthday and are deciding
if you should fly or drive.
D) Diana is trying to decide if she
should open her pet shop on
Sundays.
MOST TESTED QUESTIONS AND VERIFIED
SOLUTIONS|GET IT 100% ACCURATE!!
Save
Terms in this set (138)
Technological progress has made it d
possible for firms such as Apple
and Alivecor to develop small
electronic devices, including
smartwatches, smartphones, and
products that can be attached to
the smartwatches and smartphones,
to serve consumers who have
become more health conscious and
wish to monitor various health
conditions. These firms are reacting
to which of the three key economic
ideas?
A) firms attempt to maximize
revenues
B) optimal decisions are made at
the margin
C) people are rational
D) people respond to economic
incentives
,The term "market" in economics c
refers to ______________
A) a place where money changes
hands.
B) a legal institution where
exchange can take place.
C) a group of buyers and sellers of
a product and the arrangement by
which they come together to trade.
D) an organization which sells
goods and services.
Which of the following best b
describes an assumption
economists make about human
behavior?
A) They assume that individuals act
rationally all the time in all
circumstances.
B) They assume that rational
behavior is useful in explaining
choices people make even though
people may not behave rationally
all the time.
C) They assume that people take
into account the question of
fairness in all decisions they make.
D) They assume that individuals act
randomly.
,1. In the first six months of 2003, b
branches of Commerce Bank in
New York City were robbed 14
times. The New York City Police
recommended steps the bank
could take to deter robberies,
including the installation of plastic
barriers called "bandit barriers." The
police were surprised the bank did
not take their advice. According to
a deputy commissioner of police,
"Commerce does very little of what
we recommend. They've told our
detectives they have no interest in
ever putting in the barriers."
It would seem that Commerce Bank
would have a strong incentive to
install "bandit barriers" to deter
robberies. Why wouldn't they do it?
A) The banks would rather delay
installation of any theft deterring
equipment in anticipation of new,
lower-cost innovations in the
security devices market.
B) The banks must have weighed
the cost of installing bandit barriers
against the benefits and decided
that they have "no interest in
, Economics promotes which of the d
following as the way to make the
best decision?
A) Continue an enjoyable activity as
long as you do not have to pay for
it.
B) Continue an enjoyable activity
until it is no longer enjoyable.
C) Continue an enjoyable activity
until you cannot afford to pursue it.
D) Continue an enjoyable activity
up to the point where its marginal
benefit equals its marginal cost.
Which of the following is an d
example of a "how much" decision?
A) Octavia is debating whether to
buy a pair of Jimmy Choo shoes or
Steve Madden boots.
B) Humberto has taken a second
job to earn money to buy a Harley-
Davidson SuperLow Sportster.
C) You plan on going to Las Vegas
for your birthday and are deciding
if you should fly or drive.
D) Diana is trying to decide if she
should open her pet shop on
Sundays.
