The economic decision rule is to undertake an action only when the marginal benefits of that action are greater than its total costs.
Answer the following statement true (T) or false (F)
False
The economic decision rule is to undertake an action only when the marginal benefits of that action are greater than its marginal costs.
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Scarcity means that
A) what we can produce with our resources is greater than our material wants. B) resources are unlimited. C) wants are greater than what we can produce with our resources. D) governments must make up for shortages in resources. E) choices made in self-interest cannot be the same as those made in the social interest.
Consider the following economic agents:
a. the government b. consumers c. producers Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? A) consumers B) consumers and producers C) producers D) the government E) the government, consumers, and producers
Which is a screen against adverse selection
a. Insurance companies require homeowners to have smoke detectors b. Rearview cameras in cars c. Installing engine monitors to track driving habits of the insured d. Prospective secretaries must take a typing test before being hired
The socially optimal rate of growth is:
a) Zero b) Negative c) Where the marginal social benefit = the marginal social cost d) Total social costs are minimized