If the net benefit of Project A is $10 and that of Project B is $12, which of the following statements is true?
A) An individual can optimize by choosing Project B.
B) Switching from Project A to Project B reduces the net benefit by $2.
C) An individual can optimize by choosing Project A.
D) Switching from Project A to Project B increases the net benefit by $1.2.
A
You might also like to view...
If the price is above the equilibrium price, then there is a
A) surplus, and market forces will operate to lower price. B) surplus, and market forces will operate to raise price. C) shortage, and market forces will operate to lower price. D) shortage, and market forces will operate to raise price.
Andy can't make a deal with Danny. Andy has a Alex Rodriguez baseball card and would like to trade it to Danny for Danny's Albert Pujols card, but Danny doesn't want a Alex Rodriquez card
Andy's problem illustrates the drawback to a barter system known as A) the specialization problem. B) the double coincidence of wants problem. C) the many prices problem. D) the transactions problem.
Which of the following describes the medium-of-exchange function of money?
A) noting that Audible.com sells downloadable audio books for $10 per book B) making a monthly payment toward your car loan C) paying $30 for a haircut D) putting away $50 each month into your savings account
If the GDP gap is -$3.5 trillion, then
A. workers are employed overtime. B. the economy is experiencing a boom. C. the economy is in a recession. D. cyclical unemployment is negative.