The optimal number of units to produce is best expressed when:
a. marginal benefit exceeds marginal cost
b. marginal cost exceeds marginal benefit
c. marginal benefit and marginal cost are close to equal
d. both a and c
c
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Refer to the above figure. The figure represents the saving function for the consumer. Point A represents
A) the point at which saving equals zero. B) a situation in which saving is positive. C) a situation in which saving is negative. D) the amount of autonomous consumption.
When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information b. decisions are being moved to those with stronger incentives to make good decisions c. decisions are being moved to those with more of the relevant information d. decisions are being moved from those with weaker incentives to make good decisions
What typically happens to the inflation rate when unemployment falls to very low levels?
(A) It will rise or fall but not with the unemployment rate. (B) It falls. (C) It stays the same. (D) It rises.
Because many events cannot be foreseen, investment is made with imperfect knowledge.
Answer the following statement true (T) or false (F)