A rational decision maker takes an action if and only if
a. the average benefit of the action exceeds the average cost.
b. the average cost of the action exceeds the average benefit.
c. the marginal benefit of the action exceeds the marginal cost.
d. the marginal cost of the action exceeds the marginal benefit.
c
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Which of the following statements about positive economic analysis is true?
A) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. B) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. C) Unlike positive economic analysis, normative economic analysis can be tested. D) There is much more disagreement among economists over positive economic analysis than over normative economic analysis.
List three key reasons to study economics
What will be an ideal response?
The accompanying table shows a pizzeria's fixed cost and variable cost at different levels of output. Pizzas sell for $20 each.Number of Pizzas Per DayFixed Cost ($/Day)Variable Cost ($/Day)050002550015050500250755004501005008501255001,650 When the pizzeria makes 100 pizzas a day, its fixed cost is ________ and its total cost is ________.
A. $350; $850 B. $850; $1,650 C. $500; $850 D. $500; $1,350
Holding everything else unchanged, higher interest rates in foreign countries relative to interest rates
A) increase the demand and reduce the supply of dollars leading to an increase in the exchange rate. B) decrease the demand and the supply of dollars leading to an decrease in the exchange rate. C) increase the demand and the supply of dollars leading to an increase in the exchange rate. D) decrease the demand and increase the supply of dollars leading to a decrease in the exchange rate