Rational people make decisions "at the margin" by comparing ______
Fill in the blank(s) with correct word
marginal costs and marginal benefits
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In a Lorenz diagram for income, the line of equality shows
A) the most equitable income distribution. B) how unequally incomes are distributed. C) how much redistribution occurs. D) the income distribution if everyone received the same income.
New computer technology has
A) increased the cost of financial innovation. B) increased the demand for financial innovation. C) reduced the cost of financial innovation. D) reduced the demand for financial innovation.
Real GDP per person in Northland is $30,000, while real GDP in Southland is $10,000, However, Northland's real GDP per person is growing at 1 percent per year, and Southland's real GDP per person is growing at 3 percent per year. If these growth rates persist indefinitely, then:
A. Northland's real GDP per person will always be between 1 and 2 percent greater than Southland's. B. Northland's real GDP per person will decline until it equals Southland's. C. Southland's real GDP per person will eventually be greater than Northland's. D. Southland's real GDP per person will always be exactly 2 percent less than Northland's.
If the world supply curve is SW0, and the country discovers a significant natural resource that can be exported, the world supply curve will shift:
A. up and the trade balance will become a surplus. B. up and the trade balance will become a deficit. C. down and the trade balance will become a surplus. D. down and the trade balance will become a deficit.