A rational decision maker will take only those actions for which the expected marginal benefit _____
a. is positive.
b. is at its maximum level.
c. is greater than or equal to the expected marginal cost.
d. is less than the expected marginal cost.
e. exactly equals the total cost.
c. is greater than or equal to the expected marginal cost.
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Refer to the table above, which gives five points on a nation's PPF. The opportunity cost of increasing the production of Y from 16 to 36 units is a total of
A) 1/5 unit of X per unit of Y. B) 2/5 unit of X per unit of Y. C) 1/2 unit of X per unit of Y. D) 3/5 unit of X per unit of Y.
Which of the following is a reason why it is difficult to estimate the extent of economic discrimination in the labor market?
A) Differences in wages can be attributed to many other factors as well, such as differences in productivity and preferences. B) Ultimately, employers who discriminate cannot remain profitable. C) Employers who discriminate pay an economic penalty. D) Employers who discriminate are likely to do so in overt ways such as awarding some workers with benefits-in-kind.
If those who consumed common resources were subject to a tax that was equal to the external costs that they imposed due to the negative externality created:
A. individuals would consume less. B. total surplus would be maximized for the whole society. C. an efficient level would be reached. D. All of these statements are true.
In 2016, the city of Canfield collected $500,000 in taxes and spent $450,000. In 2016, the city of Canfield had a
A. budget surplus of $450,000. B. budget surplus of $50,000. C. budget surplus of $5,000. D. budget deficit of $50,000.