A rational decision maker takes an action only if the
a. marginal benefit is less than the marginal cost.
b. marginal benefit is greater than the marginal cost.
c. average benefit is greater than the average cost.
d. marginal benefit is greater than both the average cost and the marginal cost.
b
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A household survey is used to calculate
A) the unemployment rate. B) the level of payroll employment. C) both the unemployment rate and the level of payroll employment. D) neither the unemployment rate nor the level of payroll employment.
Which of the following is most likely to increase the natural rate of unemployment?
a. An increase in the age of the working population b. A shift from service to manufacturing jobs c. An increase in the minimum wage rate d. A reduction in social security benefits e. A reduction in direct taxes
In an open economy, aggregate supply consists of domestic production plus imports
a. True b. False Indicate whether the statement is true or false
Adam Smith's insight was that prices adjust to guide individual buyers and sellers to reach outcomes where, in many cases,
a. opportunity cost is minimized for buyers. b. scarcity is reduced for society. c. well-being of society is maximized. d. opportunity cost of production is maximized.