From an economic perspective, when a student decides to go to the movies instead of studying for a test, it indicates that in the student's thinking the marginal:
A. Benefit of studying is greater than the marginal cost of studying
B. Cost of going to the movies is less than the marginal benefit of going to the movies
C. Benefit of studying are greater than the marginal benefit of going to the movies
D. Cost of going to the movies is greater than the marginal cost of studying
Answer: B. Cost of going to the movies is less than the marginal benefit of going to the movies
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Joseph Schumpeter said that profits were a reward for ________; Frank Knight said that profits were a reward for __________.
Fill in the blank(s) with the appropriate word(s).
The market where currencies may be bought and sold for immediate delivery is known as
A) the forward exchange market. B) the spot exchange market. C) the purchasing power market. D) the futuristic exchange market.
Because an expansionary monetary policy decreases domestic interest rates, it can be used to fix the value of the domestic currency below the market equilibrium rate.
Answer the following statement true (T) or false (F)
Refer to the accompanying table below. The average benefit of 4 units of activity is:Units of ActivityTotal CostTotal Benefit0$0$01$2$122$6$223$12$304$20$365$30$406$42$427$56$43
A. $10 B. $9 C. $4 D. $5