Most real-world choices aren't about getting all of one thing or another; instead, most choices involve _________________, which includes comparing the benefits and costs of choosing a little more or a little less of a good.
A. benefit analysis
B. utility
C. marginal analysis
D. opportunity cost
Answer: C. marginal analysis
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Growth rates in labor productivity
(a) increased in the 1970s. (b) slowed across all employment sectors, with some experiencing more severe drops than others. (c) decreased across all employment sectors at the same rate. (d) were largely stagnate.
If a perfectly competitive industry is in long-run equilibrium, firms maximize profits, and the process of entry and exit results in
A. all firms producing where P = MC = AC. B. a left shift in the industry supply curve. C. a few firms earning economic profits. D. the price falling to the point where MR > MC.
Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each. What are Wanda's explicit costs per glass?
a. $0.18 b. $0.10 c. $0.08 d. $0.02
Assume that Ms. Sawyer's salary is $42,000, up from $40,000 last year, while the CPI is 157.5 this year, up from 150 last year. This means that Ms. Sawyer's real income has
A) increased. B) decreased. C) stayed the same. D) It depends on which year is the base year.