If marginal benefit is greater than marginal cost, a rational choice involves ?

A. no more of the activity.

B. less of the activity

C. more of the activity

D. more or less, depending on the benefits of other activities

Normative economics Forms ________ based on ________?

A. positive statements, facts

B. opinions personal facts

C. positive statements values

D. opinions facts

The opportunity cost of a good is______________?

A. the time lost in finding it

B. the quantity of other goods sacrificed to get another unit of that good

C. the expenditure on the good

D. the loss of interest in using savings

Productivity can be increased by ?

A. improving the education of workers

B. raising union wages.

C. raising minimum wages.

D. restricting trade with foreign countries.

In a free market?

A. government intervenes

B. government plan production

C. government interferes

D. Prices adjust to reconcile scarcity and desires

The Phillips curve shows that ?

A. the business cycle has been eliminated

B. an increase in inflation temporarily increases unemployment.

C. inflation and unemployment are unrelated in the short run.

D. a decrease in inflation temporarily increases unemployment.

Workers in Western Europe enjoy a high standard of living because ?

A. the countries of Western Europe have set high minimum wage rates.

B. Unions in Western Europe keep the wage high

C. The countries of Western Europe have protected their industries from foreign corporation

D. Workers in the united states are highly productive

D. none of these answers.

Which of the following situations describes the greatest market power ?

A. Subaru’s impact on the price f cars

B. a farmer’s impact on the price of corn

C. Microsoft’s impact on the price of desktop operating systems

D. a student’s impact on college tuition

Which of the following activities is most likely to produce an externality?

A. A student eats a hamburger in the student union.

B. A student reads a novel for pleasure

C. A student sits at home and watches T.V

D. A student has a party in her room in the student hall of residence.

Foreign trade ?

A. increase the scarcity of resources.

B. makes a country more equitable.

C. allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.

D. None of these