The Cost-Benefit Principle indicates that an action should be taken if:
A. its extra benefit is greater than or equal to its extra cost.
B. its average benefits exceed its average costs.
C. its net benefit (benefit minus cost) is zero.
D. its total benefits exceed its total costs.
Answer: A
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Which of the following results in a movement along the supply curve of spinach but does not shift the supply curve of spinach?
A) disastrous weather that destroys half of this year's spinach crop B) a rise in the price of spinach C) an increase in wages for workers in spinach fields D) great weather that produces a bumper spinach crop this year
Many economists conclude that in-kind income programs have served to reduce levels of inequality significantly from the levels suggested by aggregate income statistics
a. True b. False Indicate whether the statement is true or false
The term net exports refers to:
a. the situation in which a country's exports exceed its imports. b. the situation in which a country's imports exceed its exports. c. the shortages that result when a country imposes a price ceiling. d. the shortages that result when a country imposes a price floor. e. the difference between the value of exports and the value of imports.
The existence of many discouraged workers in an economy may cause us to
a. overstate the employment rate b. understate the employment rate c. overstated the unemployment rate d. understate the unemployment rate e. overstate the value of GDP