According to the Cost-Benefit Principle, you should go see the latest Star Wars movie with your friends this week-end if:
A. the benefits of seeing the movie are greater than the costs of seeing the movie.
B. you have a free ticket.
C. you can afford to go to the movies.
D. you really like Star Wars.
Answer: A
You might also like to view...
As wealth decreases, which of the following is likely to account for a smaller fraction of a saver's portfolio?
A) stocks B) corporate bonds C) cash D) U.S. government securities
The questions that an economic system attempts to solve include
A) what to produce. B) how to produce items. C) for whom items are produced. D) all of the above.
Which of the following is the most valid expression of a theory of under consumption as a cause of business cycles?
a. capital goods production encroaches on consumer goods production b. income equals production, but not all income is used for current purchasing power c. people want more goods than the economy is capable of producing; therefore, they must cut their consumption expectations d. the economy provides insufficient purchasing power to buy back the goods it produces
In calculating gross domestic product, investment refers to the purchase of new ______________ goods.
a. quality b. capital c. government d. superior