If a person takes an action if, and only if, the extra benefits from taking that action are at least as great as the extra costs, then that person is:
A. not rational.
B. not following the Cost-Benefit Principle.
C. following the Cost-Benefit Principle.
D. following the Scarcity Principle.
Answer: C
You might also like to view...
Including marginally attached workers in the calculation of the unemployment rate would
A) increase the reported rate. B) lower the reported rate. C) not change the reported rate. D) change the reported rate, but in an unpredictable manner.
If the real interest rate and the nominal interest rate are both negative and equal to each other, then the
A. inflation premium is zero. B. inflation premium is also negative. C. inflation premium is positive. D. economy must be in a recession.
14) In the figure above, point E could be obtained if A) resources were shifted from education to healthcare. B) resources were used more efficiently. C) there was an increase in society’s resources. D) resources were shifted from healthcare to education.
A U.S. family flies from Boston to Shanghai on a China Airlines plane. This transaction is
A) considered an export of service in the U.S balance of payment accounts. B) a deficit item in the balance of payment accounts of China. C) Both of the above are correct. D) none of the above.