If marginal revenue is less than marginal cost, the firm should
A. raise marginal revenue.
B. decrease its rate of output.
C. increase its rate of output.
D. raise price.
Answer: B
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A typical economy produces thousands of different goods. Is it accurate to say that society faces a production possibilities frontier?
A. No, because two dimensions cannot capture the complexity of a full economy. B. No, although a graph with several thousand dimensions would be appropriate. C. Yes, although society does not face opportunity cost and the model does not apply. D. Yes, because scarcity always imposes opportunity costs. E. Uncertain, economic theory has no answer to this question.
Distinguish the concepts of comparative advantage and absolute advantage
What will be an ideal response?
When an individual's consumption of a good does not prevent others from consuming the same good, then that good is classified as _____
a. excludable b. rival c. non-excludable d. non-rival
Women currently comprise ______ of the workforce.
a. about one-third b. about two-thirds c. just under half d. just over half