Question: 1.Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment. Explain how this demonstrates that economic agents respond to incentives. Which of the following accurately describes the fundamental problem at the core of all economic analysis? The fundamental problem is: a. understanding how resources can be used without creating scarcity. b. finding the way in which society can eliminate scarcity. c. the creation of non-scarce goods and the elimination of scarce goods. d. understanding how scarce resources are allocated among competing uses to best satisfy society's unlimited wants. 2.The process is constrained when A. Demand, supply, demand B. Capacity, supply, demand exceeds C. Demand, demand, supply D. Capacity, demand, supply 3.Each of the following ideas is central to economics except: a. people react to incentives b. specialization and trade benefit everyone c. good institutions can eliminate economic trade-offs d. prices rise when the government prints too much money and the flow rate is equal to the demand rate.
Question: 1.Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment. Explain how this demonstrates that economic agents respond to incentives. Which of the following accurately describes the fundamental problem at the core of all economic analysis? The fundamental problem is: a. understanding how resources can be used without creating scarcity. b. finding the way in which society can eliminate scarcity. c. the creation of non-scarce goods and the elimination of scarce goods. d. understanding how scarce resources are allocated among competing uses to best satisfy society's unlimited wants. 2.The process is constrained when A. Demand, supply, demand B. Capacity, supply, demand exceeds C. Demand, demand, supply D. Capacity, demand, supply 3.Each of the following ideas is central to economics except: a. people react to incentives b. specialization and trade benefit everyone c. good institutions can eliminate economic trade-offs d. prices rise when the government prints too much money and the flow rate is equal to the demand rate.
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 1SQP
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Transcribed Image Text:Question:
1.Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment.
Explain how this demonstrates that economic agents respond to incentives.
Which of the following accurately describes the fundamental problem at the core of all economic analysis? The fundamental problem is:
a. understanding how resources can be used without creating scarcity.
b. finding the way in which society can eliminate scarcity.
c. the creation of non-scarce goods and the elimination of scarce goods.
d. understanding how scarce resources are allocated among competing uses to best satisfy society's unlimited wants.
2.The process is
constrained when
A. Demand, supply, demand
B. Capacity, supply, demand
exceeds
C. Demand, demand, supply
D. Capacity, demand, supply
3.Each of the following ideas is central to economics except:
a. people react to incentives
b. specialization and trade benefit everyone
c. good institutions can eliminate economic trade-offs
d. prices rise when the government prints too much money
and the flow rate is equal to the demand rate.
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