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
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Money must be ________ which includes the fact that is should ________
A) generally accepted as a means of payment; be recognizable and divisible into small parts B) backed by gold; not decrease in value over time C) whatever is used in a barter system; transferable across countries' borders D) accepted as a means of payment across countries' borders; not be fiat money E) in physical form; not be transferable using electronic means
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?
A) The level of unemployment will rise, but the percentage of the labor force unemployed will not change. B) The unemployment rate will fall. C) The unemployment rate will rise. D) None of the above will occur.
Takeover bids (and the potential for such bids)
a. increase the incentive of corporate managers to perform efficiently. b. increase the likelihood that managers will be able to gain at the expense of stockholders. c. are more likely to occur when a company is producing efficiently and operating profitably. d. serve no useful economic purpose.
Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?
A. A choice of more computers and less education. B. A choice of more education and less computers. C. A reduction in the labor force. D. An increase in the quantity of resources.