When considering whether or not to consume a second slice of cake, an individual is following marginal thinking if she compares the total cost of consuming both the first and second slices with their total benefit before making a decision
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Assuming all else equal, if the Fed is expected to adopt a contractionary monetary policy, ________
A) labor demand will increase B) inflation expectations will increase C) the long-run real interest rate will increase D) labor supply will increase
Three methods the government can use to cope with the external cost from pollution are
A) pollution taxes, subsidies, and outright bans. B) pollution taxes, regulations, and subsidies. C) marketable permits, pollution subsidies, and pollution taxes. D) pollution charges, marketable permits, and pollution limits. E) vouchers, pollution subsidies, and pollution taxes.
If a firm enjoys producer surplus in perfectly competitive Market A of $1000 and would enjoy producer surplus in perfectly competitive Market B of $1200, the firm would consider moving to Market B if
A) fixed costs are greater than $100 in Market A. B) fixed costs are less than $200 in Market B. C) fixed costs are less than $300 but greater than $200 in Market B. D) fixed costs in Market B are less than the fixed costs in Market A plus $200.
The opportunity cost of a decision is the value of the best foregone alternative to the decision-maker
a. True b. False Indicate whether the statement is true or false