The rule of rational choice suggests that you will engage in more of an activity if:
a. the total benefit from that activity exceeds the total cost of the activity
b. the total cost from that activity exceeds the total benefit of the activity.
c. the additional cost incurred as a result of the activity exceeds the additional benefit received.
d. the additional benefit received as a result of the activity exceeds the additional cost incurred.
d
You might also like to view...
People increase their labor supply in response to a temporary increase in government purchases because
A) current or future taxes will increase, making them financially worse off. B) they need to work more to keep up with their neighbors. C) interest rates will rise, causing a substitution effect. D) higher spending today will lead to higher spending in the future, as well.
Excess capacity characterizes firms in monopolistically competitive markets, even in situations of long-run equilibrium
a. True b. False Indicate whether the statement is true or false
Recall the Application about how policymakers use stress tests to protect the financial system to answer the following question(s).According to this Application, after the financial crisis of 2008, former Treasury Secretary Timothy Geithner and his staff made a proposal that major banks and financial institutions be subjected to:
A. yearly audits. B. stress tests. C. regulation by Congress. D. None of these.
The concept of utility is
A) subjective so that there can be no true measurement of someone's utility. B) subjective so measurement of someone's utility must be done scientifically. C) objective so that devices can be developed that would measure a person's utility. D) objective so that psychologists can measure utility and compare one person's utility with that of another person.