The principle that individuals and firms pick the activity level where the incremental benefit of that activity equals the incremental cost of that activity is known as the
A) spillover principle. B) principle of diminishing returns.
C) principle of opportunity cost. D) marginal principle.
D
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Refer to Figure 4-3. If the market price is $3.50, what is the maximum number of ice cream cones that Kendra will buy?
A) 1 B) 2 C) 3 D) 4
Fixed exchange rate regimes
A) existed prior to the nineteenth century but were then superseded by the gold standard. B) lower the transactions costs of buying and selling goods and assets. C) result in higher world interest rates. D) were first established by the GATT in 1971.
To demonstrate the anchoring phenomenon, Kahneman and Tversky would ask research subjects very difficult questions that should be answered with a number between zero and 100
Before asking for the respondent's answer, they would also spin a large wheel that generated random number outcomes from zero to 100. If the respondents were subject to the anchoring effect, then we should expect that: A) their responses are uncorrelated with the numbers generated by the wheel. B) their responses are correlated with the numbers generated by the wheel. C) their responses are wrong most of the time. D) none of the above
If a firm has a downward-sloping long-run average cost curve over the entire range of market demand, it is a
a. local monopoly b. resource monopoly c. monopsony d. output monopoly e. natural monopoly