A person will choose to work another hour if the benefit of another hour of work is:
A. greater than the opportunity cost.
B. exactly equal to the average total cost to the firm.
C. exactly equal to the opportunity cost.
D. less than the opportunity cost.
Answer: A
You might also like to view...
The additional benefit incurred when undertaking an activity is the ________ benefit
A) total B) gross C) marginal D) explicit
Suppose that the price of a pizza is $10 and that the price of a blouse is $30 . At her present level of consumption, Magda's ratio of marginal utility of pizza to marginal utility of blouses is 1/2 . To maximize total utility, she should
a. buy more pizzas and fewer blouses b. buy fewer pizzas and more blouses c. continue to buy the same quantities of pizza and blouses d. spend more time consuming pizza e. spend more time buying blouses
If the purpose of a tax is to raise revenue, it would be best for government to place the tax on which of the following goods?
a. a non-essential good, such as holiday travel b. a good whose demand curve is highly elastic c. a good that has several close substitutes d. a good whose demand curve is highly inelastic e. a good whose demand curve is unit elastic
If Hermione pays $10.00 in taxes on $100 of income and $10.25 on $101 of income, which of the following is not true?
A. Her marginal tax rate at $100 is 25 percent. B. Her average tax rate at $100 is 10 percent. C. She faces a progressive tax. D. Her marginal tax rate at $100 is 10.25 percent.