If the marginal cost of an activity exceeds the marginal benefit, then
A) the activity will occur because the high marginal cost means it must be highly valued.
B) the forgone alternatives' costs must be increased.
C) an alternative action will be selected.
D) the person must concentrate on the activity's total benefits.
C
You might also like to view...
Which of the following resulted from the Smoot-Hawley trade bill of 1930?
a. The stock market began a steady recovery from the crash of October 1929. b. Many countries responded by imposing higher tariffs on American products, and the volume of international trade fell sharply. c. Imports decreased, while exports increased, resulting in an overall increase in GDP and tariff revenues. d. The unemployment rate, which had been rising, began to steadily decline as jobs were protected by the trade restrictions.
Refer to Figure 5-16. What is the optimal quantity of street lights to install?
A) 3
B) 4
C) 6
D) 9
Which of the following factors has contributed to rising health care prices in the United States?
A. The supply of physicians per 100,000 people has decreased since 1975. B. Productivity growth in the health care industry has been negative in recent years. C. Improvements in medical technology have significantly increased the number of patients that can be treated each year. D. The supply of physicians per 100,000 people has risen since 1975, but not as fast as the increase in the demand for physicians' services.
Which of the following is not an investment?
A. the purchase of a share of stock by a household B. the purchase of a delivery van by a florist C. the purchase of a new computer system by a law firm D. all of the above