Marginal cost is the cost
A) that your activity imposes on someone else.
B) that arises from an increase in an activity.
C) of an activity that exceeds its benefit.
D) that arises from the secondary effects of an activity.
B
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Which of the following is a role played by the Fed in the U.S. economy?
A) It acts as a lender of the last resort in case of bank runs. B) It determines the import duty on raw materials being imported into the country. C) It acts as a direct source of funds for new businesses and startups. D) It takes political decisions during periods of recessions.
Because incomes are limited, purchasing one thing means not being able to purchase other things. This indicates that:
a. marginal utility diminishes. b. marginal utility is constant. c. people will allocate their income among goods so as to achieve the most satisfaction. d. people will allocate their income among goods so that the marginal utilities of all goods is equal. e. people will allocate their income among goods so that the marginal utilities of all goods is zero.
If your wage increases from $10 per hour to $15 per hour, then your
a. opportunity cost of an hour of leisure decreases by $5 per hour. b. opportunity cost of an hour of leisure increases by $5 per hour. c. out-of-pocket cost of an hour of leisure decreases by $5 per hour. d. out-of-pocket cost of an hour of leisure increases by $5 per hour.
Those who oppose minimum wage legislation argue that:
A. workers deserve a basic standard of living. B. setting a wage above the market-clearing equilibrium creates unemployment. C. the way to get an efficient labor market is for government intervention. D. it should be set below the market-clearing equilibrium.