A rational decision maker will take only those actions for which the expected marginal benefit
a. is positive
b. is at its maximum level
c. is greater than or equal to the expected marginal cost
d. is less than the expected marginal cost
e. exactly equals the expected marginal cost
C
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Under the Bretton Woods system, participating countries
A) pegged their currencies to the U.S. dollar. B) maintained a fixed exchange rate with gold. C) allowed their currencies to float freely. D) pegged their values to the British pound.
The Phillips curve was ________
A) never very popular in policy circles B) influential in efforts to bring the unemployment rate down to low levels C) generally confirmed in the 1970s, when low unemployment persisted despite rising inflation D) all of the above E) none of the above
A firm built an inventory of 16-bit chips for $50,000 last year. However, the introduction of 32-bit chips lowers the market price for 16-bit chips and the inventory can only be sold for $40,000 now
What is the opportunity cost of the inventory of 16-bit chips? A) $50,000 B) $40,000 C) $10,000 D) $90,000
If real GDP increases by 5 percent and the population increases by 10 percent during the same period, real GDP per capita
a. increases. b. decreases. c. remains unchanged. d. increases if prices rise.