Marginal analysis suggests that you will engage in more of an activity if the:
A. total benefit of the activity is less than the total cost.
B. additional benefit from the activity exceeds the additional cost.
C. additional cost of the activity exceeds the additional benefit.
D. total benefit from the activity exceeds the total cost.
Answer: B
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The simple median voter model is unbiased with respect to special interests
a. True b. False
The poverty rate _______ between 1993 and 2000 and _____ between 2001 and 2004.
A. fell; fell B. rose; rose C. fell; rose D. rose; fell
One way to characterize the difference between compounding and discounting is to say that
a. compounding involves the assumption that the interest rate is zero, whereas discounting does not involve that assumption. b. discounting involves the assumption that the interest rate is zero, whereas compounding does not involve that assumption. c. the process of compounding produces a future value, whereas the process of discounting produces a present value. d. the process of compounding produces a present value, whereas the process of discounting produces a future value.
All of the following are functions of the Fed EXCEPT
A. providing paper currency. B. enforcing international trade agreements. C. the banker and fiscal agent for the government. D. serving as a mechanism for clearing checks.