10/21/24, 7:21 AM Macroeconomics EC112/ 2024-2025 update|COMPREHENSIVE FREQUENTLY TESTED QUESTIONS AND VERIFIED ANS…
Macroeconomics EC112/ 2024-2025
update|COMPREHENSIVE FREQUENTLY
TESTED QUESTIONS AND VERIFIED ANSWERS/
GET IT 100% ACCURATE
Terms in this set (138)
Technological progress d
has made it 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
https://quizlet.com/960069587/macroeconomics-ec112-2024-2025-updatecomprehensive-frequently-tested-questions-and-verified-answers-get-i… 1/53
,10/21/24, 7:21 AM Macroeconomics EC112/ 2024-2025 update|COMPREHENSIVE FREQUENTLY TESTED QUESTIONS AND VERIFIED ANS…
The term "market" in c
economics 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 b
best 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.
https://quizlet.com/960069587/macroeconomics-ec112-2024-2025-updatecomprehensive-frequently-tested-questions-and-verified-answers-get-i… 2/53
,10/21/24, 7:21 AM Macroeconomics EC112/ 2024-2025 update|COMPREHENSIVE FREQUENTLY TESTED QUESTIONS AND VERIFIED ANS…
1. In the first six months of b
2003, 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
https://quizlet.com/960069587/macroeconomics-ec112-2024-2025-updatecomprehensive-frequently-tested-questions-and-verified-answers-get-i… 3/53
, 10/21/24, 7:21 AM Macroeconomics EC112/ 2024-2025 update|COMPREHENSIVE FREQUENTLY TESTED QUESTIONS AND VERIFIED ANS…
decided that they have
"no interest in
Economics promotes d
which of the 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.
https://quizlet.com/960069587/macroeconomics-ec112-2024-2025-updatecomprehensive-frequently-tested-questions-and-verified-answers-get-i… 4/53
Macroeconomics EC112/ 2024-2025
update|COMPREHENSIVE FREQUENTLY
TESTED QUESTIONS AND VERIFIED ANSWERS/
GET IT 100% ACCURATE
Terms in this set (138)
Technological progress d
has made it 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
https://quizlet.com/960069587/macroeconomics-ec112-2024-2025-updatecomprehensive-frequently-tested-questions-and-verified-answers-get-i… 1/53
,10/21/24, 7:21 AM Macroeconomics EC112/ 2024-2025 update|COMPREHENSIVE FREQUENTLY TESTED QUESTIONS AND VERIFIED ANS…
The term "market" in c
economics 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 b
best 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.
https://quizlet.com/960069587/macroeconomics-ec112-2024-2025-updatecomprehensive-frequently-tested-questions-and-verified-answers-get-i… 2/53
,10/21/24, 7:21 AM Macroeconomics EC112/ 2024-2025 update|COMPREHENSIVE FREQUENTLY TESTED QUESTIONS AND VERIFIED ANS…
1. In the first six months of b
2003, 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
https://quizlet.com/960069587/macroeconomics-ec112-2024-2025-updatecomprehensive-frequently-tested-questions-and-verified-answers-get-i… 3/53
, 10/21/24, 7:21 AM Macroeconomics EC112/ 2024-2025 update|COMPREHENSIVE FREQUENTLY TESTED QUESTIONS AND VERIFIED ANS…
decided that they have
"no interest in
Economics promotes d
which of the 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.
https://quizlet.com/960069587/macroeconomics-ec112-2024-2025-updatecomprehensive-frequently-tested-questions-and-verified-answers-get-i… 4/53
