Question : 71) In the first six months of 2003, branches of : 1244601

71) 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 ever putting in the barriers.”

C) The banks are concerned that “bandit barriers” would send the wrong message to customers — that the bank is unsafe.

D) The banks probably resent any interference from the police department.

72) Holding all other personal characteristics-such as age, gender, and income-constant, economists would expect that

A) people without health insurance will be less likely to be overweight than people with health insurance.

B) people without health insurance will be more likely to be overweight than people with health insurance.

C) people without health insurance will be equally likely to be overweight as people with health insurance.

D) there is no correlation between not having health insurance and being overweight.

73) According to the Centers for Disease Control and Prevention, ________ in 2013 in which less than 20 percent of the population was considered obese.

A) Colorado was the only state

B) there were only 5 states

C) there were more than 25 states

D) there were no states

74) What does the term “marginal” mean in economics?

A) the edge of a market

B) an additional or extra

C) illegal

D) secondary

E) trivial

75) An office supply store sells a ream of printer paper at a fixed price of $4.50. Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

A) marginal revenue

B) gross earnings

C) pure profit

D) marginal costs

E) net benefit

76) 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.

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.

77) ________ involves undertaking an activity until its marginal benefits equal marginal costs.

A) Scarcity reduction

B) Central planning

C) Marginal analysis

D) Market intervention

78) The revenue received from the sale of an additional unit of a product

A) is a marginal benefit to the firm.

B) is called profit.

C) is called gross sales.

D) is called a net gain.

79) The cost incurred from the production of an additional unit of a product

A) is a marginal cost to the firm.

B) is called a loss.

C) is called opportunity cost.

D) must be zero for a firm to be efficient.

80) Before a doctor decides to keep her office open on Saturdays, she should

A) make sure that the marginal cost of doing so will exceed the marginal benefit.

B) only consider the increase in total profit from doing so.

C) weigh the costs and benefits of staying open on Saturdays before deciding if she should go through with this idea.

D) only look at the marginal benefit of doing so, because marginal cost will not change.