Basically, the marginal principle helps us to evaluate the factors involved in taking an action or if doing something is worth the effort.
Answer the following statement true (T) or false (F)
True
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Refer to Table 5.4. If at Job B the $20 outcome occurs with probability .2, and the $50 outcome occurs with probability .8, then the standard deviation of payoffs at Job B is nearest which value?
A) $10 B) $12 C) $20 D) $35 E) $44
Which of the following actions could be undertaken if the government wants to close a recessionary gap?
A) Increase taxes and reduce government spending. B) Reduce taxes and increase government spending. C) Increase taxes and increase government spending. D) Reduce taxes and reduce government spending.
A nation can gain from international trade when
a. its relative production costs are the same as those of other countries. b. it exports goods for which it is a low-opportunity cost producer while importing goods that it could produce only at a high opportunity cost. c. it imports goods for which it is a low-opportunity cost producer and exports goods for which it is a high opportunity cost producer. d. it has a trade deficit.
If a country can produce rice with a lower opportunity cost than its trading partners, then it must have:
A. An absolute advantage in the production of all other goods except rice. B. A comparative advantage in the production of all other goods except rice. C. An absolute advantage in the production of rice. D. A comparative advantage in the production of rice