A person should consume more of something when its marginal
A. cost exceeds its marginal benefit.
B. benefit is positive.
C. benefit exceeds its marginal cost.
D. cost equals its net marginal benefit.
Answer: C
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Which of the following causes average total cost to rise at high levels of output?
a. diminishing marginal product b. average fixed costs c. plant underutilization d. economies of scale
Fiscal policy actions that are intended to have long-run effects on real GDP attempt to increase ________ through changing ________
A) aggregate supply; government spending B) aggregate demand; taxes C) aggregate supply; taxes D) aggregate demand; government spending
During World War II (1941–45), Golden (1990) argues, the opportunity cost of women staying at home
(a) decreased. (b) stayed the same. (c) increased. (d) cannot be measured.
Which of the following is included in the demand for loanable funds?
a. investment and government borrowing b. investment but not government borrowing c. government borrowing but not investment d. neither government borrowing nor investment