A rational decisionmaker takes an action if and only if the marginal cost exceeds the marginal benefit
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is an example of a positive externality (additional social benefit)?
A. an increase in the value of land you own when a nearby development is completed B. falling property values in a neighborhood where a disreputable nightclub is operating C. the costs paid by a company to build an automated factory D. the higher price you pay when you buy a heavily advertised product
Suppose Sandy's Candies wants to increase its total revenues. If Sandy increases the price of her candy, she must be assuming that the demand for candy is
A) unit elastic. B) inelastic. C) elastic. D) income elastic.
If we consider the equation PAE = A + bY the independent part of the equation that depends on income is:
A. b B. Y C. A D. PAE
The difference in wage rates needed to make two jobs equally attractive to workers is known as a(n)
a. equilibrium wage rate b. competitive wage c. equalizing wage d. compensating wage differential e. efficient wage