Which of the following best describes rational behavior?
a. analyzing the total expected costs of a decision
b. analyzing the total expected benefits of a decision
c. Continuing to undertake an activity until its total expected benefit no longer exceeds its total expected cost
d. undertaking activities as long as the marginal expected benefit exceeds the marginal expected cost
d
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Which of the following relations is the slope along a given isoquant?
A. 0 = {?F(K,L)/?L} dK + {?F(K,L)/?K} dL B. dQ = {?F(K,L)/?K} dL + {?F(K,L)/?L} dK, where dQ > 0 C. 0 = {?F(K,L)/?L} dK + {?F(K,L)/?L} dL D. dQ = {?F(K,L)/?K} dK + {?F(K,L)/?L} dL, where dQ > 0
Macroeconomic stability has been a high priority for the economic policies of the high-growth Asian economies
Indicate whether the statement is true or false
Marginal utility theory concludes that a decrease in the price of a good increases the quantity demanded and
A) increases the demand for substitutes. B) decreases the demand for complements. C) increases the total expenditure on the good. D) increases total utility.
Marginal benefit is the total benefit to a consumer from consuming one more unit of a good or service
Indicate whether the statement is true or false