When deciding whether to buy a second car, marginal analysis indicates that the purchaser should compare the:
a. benefits expected from two cars with the cost of both.
b. additional benefits expected from a second car with the cost of the two cars.
c. dollar cost of the two cars with the potential income that the cars will generate.
d. additional benefits of the second car with the additional cost of the second car.
d
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The damage function method
a. is a behavioral linkage approach to measuring environmental benefits b. uses a technical relationship between an environmental resource and a user of that resource to estimate benefits c. uses the same technique as the contingent valuation approach d. is capable of measuring all aspects of incremental benefits simultaneously
Your financial investments consist of U.S. government bonds maturing in twenty years and shares in a start-up internet company. If interest rates on newly-issued government bonds increase, then the price of your bonds will ________ and the price of the shares you own will ________.
A. decrease; not change B. increase; increase C. increase; not change D. decrease; decrease
A reduction in wage is most likely to:
A) increase worker productivity. B) increase quantity of labor supplied. C) decrease quantity demanded of labor. D) lower worker productivity.
Referring to Figure 19.1, if the exchange rate is currently 14 pesos per dollar, then we expect the dollar to ________ and the peso to ________
A) depreciate; appreciate B) depreciate; depreciate C) appreciate; appreciate D) appreciate; depreciate