After eating four slices of pizza, you are offered a fifth slice for free. You turn down the fifth slice. Your refusal indicates that the
A. marginal benefit for the fifth pizza slice is less than its marginal cost.
B. marginal benefit for the fourth pizza slice is negative.
C. total benefit for the fifth pizza slice is negative.
D. marginal benefit for the fourth slice is the largest among all slices.
Answer: A
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Which one of the following is an example of discretionary fiscal policy used to correct an inflationary gap?
A) an increase in government expenditures approved by Congress B) decrease in the money supply by the Federal Reserve C) a tax increase passed into law by Congress D) an agreement among major banks to lower interest rates
According to the graph above, the expansion that began in December 1914 had a duration of ________
A) 51 months B) 4 years C) 3 years D) 44 months E) 20 months
Refer to Scenario 5.6. If the doctor is risk-averse, she would accept
A) $50,000 for sure rather than take the risk of being a researcher. B) $60,000 for sure (the minimum HMO outcome) rather than take the risk of being a researcher. C) $95,000 for sure rather than face option 1 and option 2 in research. D) $275,000 for sure (the average of option 1 and option 2 in research), but not less, rather than face the risk of those two options. E) the research position because it has the highest possible income.
To achieve the socially optimal level of pollution, the biggest polluters should be targetted for the greates reduction in pollution
a. True b. False