The rule of rational choice is that in trying to make themselves better off, people alter their behavior if the expected marginal benefits to them from doing so ____ the expected marginal costs they will bear.
a. exceed
b. equal.
c. are less than.
d. Either a. or b.
a
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The value of a worker's marginal product:
A) is the increment in total cost of a firm when the worker is hired. B) is the additional revenue that the worker brings in to the firm. C) is the maximum price at which a product can be sold in a market. D) equals the average product of a firm divided by the marginal product of the worker.
If the demand and supply both increase equally, then the equilibrium price ________ and the equilibrium quantity ________
A) increases; increases B) increases; does not change C) does not change; increases D) increases; decreases E) decreases; does not change
Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. His land is equally suitable for raising either animal. Which of the graphs in Figure 2-3 represent his production possibilities frontier?
A) Graph A B) Graph B C) Graph C D) either Graph A or Graph C E) either Graph B or Graph C
Rational decision making involves
A. choosing the cheapest option. B. choosing the highest-quality option. C. choosing the option that best helps you realize your goals, given your resources. D. avoiding choices that involve scarce resources.