A rational decisionmaker takes an action if and only if
a. the marginal benefit of the action exceeds the marginal cost of the action.
b. the marginal cost of the action exceeds the marginal benefit of the action.
c. the marginal cost of the action is zero.
d. the opportunity cost of the action is zero.
a
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A "backflow" refers to:
A. Unauthorized aliens who enter an industrialized nation looking for work B. Legal aliens who enter an industrialized nation looking for work C. Migrants who enter a series of industrialized nations looking for work D. Migrants who repeatedly return to their home countries after seeking work in another country
To prevent demand-pull inflation,
A) firms must refuse to increase the money wage rate. B) firms must refuse to increase the real wage rate. C) the Fed must not let the quantity of money persistently rise. D) the natural unemployment rate must increase. E) real GDP must increase.
If the crowding-out effect is strong, how will the potency of discretionary fiscal policy be affected?
a. It will make fiscal policy more potent. b. It will make fiscal policy less potent. c. The potency of fiscal policy will be unaffected. d. The potency of expansionary fiscal policy will be reduced, but that of restrictive fiscal policy will be enhanced.
The group of three economists appointed by the president to provide fiscal policy recommendations is the:
A. Council of Economic Advisers. B. Joint Economic Committee. C. Bureau of Economic Analysis. D. Federal Reserve Board of Governors.