According to the marginal-cost-marginal-benefit rule:
A. only government projects (as opposed to private projects) should be assessed by
comparing marginal costs and marginal benefits.
B. the optimal project size is the one for which MB = MC.
C. the optimal project size is the one for which MB exceeds MC by the greatest amount.
D. project managers should attempt to minimize both MB and MC.
Answer: B
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As the amount of labor used in production increases, total product
a. increases at low levels of labor and decreases at high levels labor. b. increases at high levels of labor and decreases at low levels of labor. c. always increases. d. always decreases.
Price ceilings cause
a. Some suppliers to drop out of the market as they cannot charge the price they were earlier charging b. A reduction in the quality of the product c. The creation of black markets d. All the above
According to the natural rate hypothesis, the unemployment rate should equal 0 percent in the long run
a. True b. False Indicate whether the statement is true or false
The new growth theory helps attract foreign students to study in
a. the former Soviet Union. b. France. c. the United States. d. the Peoples Republic of China.