1
Macroeconomics EC112
|COMPREHENSIVE MOST TESTED
QUESTIONS AND VERIFIED
SOLUTIONS|GET IT 100% ACCURATE!!
Technological progress 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 - (ANSWER)d
The term "market" in 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. - (ANSWER)c
Which of the following best describes an assumption economists make about
human behavior?
,2
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. - (ANSWER)b
1. In the first six months of 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 decided that they have "no interest in - (ANSWER)b
Economics promotes 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.
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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. - (ANSWER)d
Which of the following is an 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. -
(ANSWER)d
Every society faces economic trade-offs. This means ______
A) me people live better than others do.
B) not everyone can have enough goods to survive.
C) producing more of one good means less of another good can be produced.
D) society's output cannot be made available to all. - (ANSWER)c
Which of the following statements is false?
A) Anytime you have to decide which action to take you are facing an economic
trade-off.
, 4
B) Trade-offs do not apply when the consumers purchase a product for which
there is excess supply, such as a stock clearance sale.
C) Every individual, no matter how rich or poor, is faced with making trade-offs.
D) Economics is a social science that studies the trade-offs we are forced to make
because of scarcity. - (ANSWER)b
Who, in a modern mixed economy, decides what goods and services will be
produced with the scarce resources available in that economy?
A) the government
B) producers
C) consumers
D) consumers and producers
E) the government, consumers, and producers - (ANSWER)e
In a market economy, who decides what goods and services will be produced?
A) only the producers
B) only consumers
C) consumers and producers
D) the government - (ANSWER)c
How does a market system prevent people from getting as many goods and
services as they wish?
Macroeconomics EC112
|COMPREHENSIVE MOST TESTED
QUESTIONS AND VERIFIED
SOLUTIONS|GET IT 100% ACCURATE!!
Technological progress 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 - (ANSWER)d
The term "market" in 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. - (ANSWER)c
Which of the following best describes an assumption economists make about
human behavior?
,2
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. - (ANSWER)b
1. In the first six months of 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 decided that they have "no interest in - (ANSWER)b
Economics promotes 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.
,3
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. - (ANSWER)d
Which of the following is an 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. -
(ANSWER)d
Every society faces economic trade-offs. This means ______
A) me people live better than others do.
B) not everyone can have enough goods to survive.
C) producing more of one good means less of another good can be produced.
D) society's output cannot be made available to all. - (ANSWER)c
Which of the following statements is false?
A) Anytime you have to decide which action to take you are facing an economic
trade-off.
, 4
B) Trade-offs do not apply when the consumers purchase a product for which
there is excess supply, such as a stock clearance sale.
C) Every individual, no matter how rich or poor, is faced with making trade-offs.
D) Economics is a social science that studies the trade-offs we are forced to make
because of scarcity. - (ANSWER)b
Who, in a modern mixed economy, decides what goods and services will be
produced with the scarce resources available in that economy?
A) the government
B) producers
C) consumers
D) consumers and producers
E) the government, consumers, and producers - (ANSWER)e
In a market economy, who decides what goods and services will be produced?
A) only the producers
B) only consumers
C) consumers and producers
D) the government - (ANSWER)c
How does a market system prevent people from getting as many goods and
services as they wish?
