Economic theory is sometimes referred to as marginalism or marginal analysis because
A) it deals with matters not central to most people's personal lives.
B) it emphasizes the effects of additional benefits and additional costs.
C) it has such a minor effect on political decisions.
D) it is only useful when it is added to a large stock of other knowledge.
E) it was created by abstracting from experience.
B
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The change in total output when one additional unit of labor is hired is known as the
a. capacity utilization rate b. average product of labor c. marginal product of labor d. total product of labor e. marginal output of labor
Which of the following is an essential component of the ladder of opportunity?
a. Effective education system b. Safety net policies and programs c. Consistent redistribution efforts d. High social rates of return
__________ costs associated with matching buyers & sellers are significant.
Fill in the blank(s) with the appropriate word(s).
Consider the market for chicken. Assuming that chicken and beef are substitutes, an increase in the price of beef will:
A. decrease the demand for chicken creating a lower price and a smaller amount of chicken purchased in the market. B. decrease the supply of chicken creating a higher price and a smaller amount of chicken purchased in the market. C. increase the demand for chicken creating a higher price and a greater amount of chicken purchased in the market. D. increase the supply of chicken creating a lower price and a greater amount of chicken purchased in the market.