If a decision maker uses marginal analysis, then the relevant costs are the
A. full costs of a particular activity or product.
B. fixed costs that do not vary with the extra activity or output.
C. profits obtained on the activity or product.
D. average costs for a particular activity or product.
E. additional costs of a particular activity or product.
Answer: E
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One possible reason the U.S. income distribution has become more unequal is
A) information technology has decreased the demand for unskilled labor. B) information technology has increased the demand for unskilled labor. C) information technology has increased the supply of unskilled labor. D) information technology has decreased the supply of unskilled labor.
The opportunity cost of an economic decision is:
a. the best alternative that was sacrificed. b. the amount of money needed to implement the decision. c. any land, labor, and capital that are wasted. d. all options that were lost due to scarcity.
Which of the following would result in a decrease in aggregate demand?
a. A higher domestic price level b. Higher raw materials prices c. Higher rates of tax d. Technological advances e. Expansionary government policy
Price discrimination is illegal in the United States
Indicate whether the statement is true or false