When a person is making a decision at the margin he or she is comparing the additional benefit of that activity to the additional cost of the proposed action
Indicate whether the statement is true or false
True
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In the economic way of thinking, a rise in the real output of final goods and services can be associated with
A) a fall in the price level. B) a rise in nominal GDP. C) a rise in the price level. D) a fall in nominal GDP. E) any of the above.
The price of a new textbook is $120 in one year and is $150 two years later, while the price of a used copy of the text increased from $40 to $60. The relative price of a new textbook
A) increased from 3 to 4.5. B) decreased from 0.8 to 0.67. C) decreased from 3 to 2.5. D) remained constant.
The majority of American workers are employed in the manufacturing sector
a. True b. False Indicate whether the statement is true or false
When the owner runs the business:
A. there is not a principal-agent problem. B. he does not receive the full benefit nor the full cost of any decision. C. he has only limited liability for the actions of the business. D. he does not bear the full cost of a bad decision.