The extra benefit resulting from a small increase in an activity is called the:
A. opportunity cost.
B. marginal benefit.
C. marginal cost.
D. diminishing returns of the activity.
Answer: B
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An example of a barrier to entry is
A) superior technological knowledge. B) high profits. C) product differentiation. D) increasing marginal costs.
If the consumption schedule is linear, then the:
A. saving schedule will also be linear.
B. MPS will decline as income rises.
C. MPC will decline as income rises.
D. APC will be constant at all levels of income.
An optimal decision is one that chooses
A. the most desirable alternative among the possibilities permitted by the resources available. B. the lowest cost method of meeting goals, without regard to quality or any other feature. C. among various possible goals and offends no one, so that all are equally happy. D. among equally important goals, and thereby avoids the “indispensable necessity” syndrome. E. among possible goals in such a way that spends as little money as possible.
Capital deepening will occur as long as total saving is greater than depreciation
Indicate whether the statement is true or false