If a person takes an action if, and only if, the extra benefits from taking that action are at least as great as the extra costs, then that person is:

A. following the Cost-Benefit Principle.
B. not following the Cost-Benefit Principle.
C. following the Scarcity Principle.
D. not rational.


Answer: A

Economics

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Economics

Refer to Figure 20-1. Based on the graph of the labor market above, if a minimum wage is set at $5 per hour, which of the following will occur?

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Economics

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Economics

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Economics