What does making decisions "at the margin" mean?
a. that people evaluate how easily a decision can be reversed if problems arise
b. that people make those decisions that do not impose a marginal cost
c. that people compare the marginal costs and marginal benefits of each decision
d. that people always calculate the marginal dollar costs for each decision
Ans: c. that people compare the marginal costs and marginal benefits of each decision
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By 2007, energy use per dollar of GDP was ____ percent of what it was in 1970
a. 95 b. 80 c. 75 d. 50
In order to estimate the current annual GDP, economists:
A. multiply the quarterly estimate by four. B. adjust quarterly GDP estimates to account for seasonal patterns. C. take an average of the last four quarters measured. D. adjust it for changes in price level.
Are we passing the national debt burden on to our children?
In a free market system, competition generates economic efficiency only when
A) individuals take into account the full opportunity cost of their actions. B) consumers are motivated by a sense of the greater good, not their own self-interest. C) firms are motivated by a sense of the greater good, not their desire for profit. D) economic decisions are taken out the hands of individuals and placed in the hands of government officials.