A person should consume more of something when its marginal:
A. benefit exceeds its marginal cost.
B. cost exceeds its marginal benefit.
C. cost equals its marginal benefit.
D. benefit is still better.
Answer: A
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Laura's team can complete 15 reports and 5 presentations in a day. Albert can motivate his team to complete 12 reports in a day with 10 presentations. Suppose the boss needs 30 reports with 20 presentations completed during a particular day. Assigning the extra presentations to Laura's team would:
a. lead to an efficient outcome. b. push the production level inside the production set. c. enhance the production level along the production set. d. increase the chances of achieving the target.
Marketable pollution permits increase the amount of pollution generated because firms that don't want to reduce pollution can buy the right to pollute.
Answer the following statement true (T) or false (F)
The idea that creating incentives for individuals and firms to increase productivity leading to an increase in long-run aggregate supply is
A. the Ricardian equivalence theorem. B. supply-side economics. C. demand-side economics. D. laissez-faire economics.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.