A rational decision maker compares the expected marginal cost to the expected marginal benefit of any activity
a. True
b. False
A
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If the market price for a competitive firm's output doubles then
A) the profit maximizing output will double B) the marginal revenue doubles C) at the new profit maximizing output, price has increased more than marginal cost D) at the new profit maximizing output, price has risen more than marginal revenue E) competitive firms will earn an economic profit in the long-run.
Featherbedding ultimately results in greater worker efficiency and therefore greater productivity and higher wages
a. True b. False
Which of the following do the marginal propensity to consume and the marginal propensity to save have in common?
a. They contradict Keynes’s original model. b. They apply only to certain household consumers. c. It is impossible for either to be zero. d. They both require change in disposable income to calculate.
A weaker value of the U.S. dollar strengthens exports of American agricultural crops.
Answer the following statement true (T) or false (F)