Because the benefits derived from an activity decline as it is expanded, it is generally
a. wise to undertake all actions that generate benefits.
b. efficient to stop well before perfection is achieved.
c. best to continue as long as it is possible to derive some additional benefits.
d. unwise to engage in activities for which the benefits decline as you do more of it.
B
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Which of the following statements is true?
A) The wages expected by potential workers are independent of their work experience. B) Some people seeking paid jobs may not be able to find employment. C) The wages expected by potential workers are independent of their educational qualifications. D) All people seeking paid jobs are eventually employed.
If an airport decides to expand by building an additional passenger terminal, and in doing so it lowers its average cost per airplane landing, it was previously operating at
A) more than minimum efficient scale. B) minimum capacity. C) less than minimum efficient scale. D) minimum efficient scale.
What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
a. The supply of loanable funds would shift rightward and investment would increase. b. The supply of loanable funds would shift leftward and investment would decrease. c. The demand for loanable funds would shift rightward and investment would increase. d. The demand for loanable funds would shift leftward and investment would decrease.
Total revenue will decrease when
A. the price elasticity of demand equals 1.20 and price rises. B. price and quantity change in opposite directions. C. the price elasticity of demand is negative. D. the price elasticity of demand equals 1.00 and price falls.