From an economic perspective, when a student decides to go to the movies instead of studying for a test, it indicates that in the student's thinking the marginal:
A. Benefit of studying is greater than the marginal cost of studying
B. Cost of going to the movies is less than the marginal benefit of going to the movies
C. Benefit of studying are greater than the marginal benefit of going to the movies
D. Cost of going to the movies is greater than the marginal cost of studying
Answer: B
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As a standard of deferred payment, money can be used to:
a. express debt obligations in the form of purchasing power. b. foster barter activity. c. facilitate exchanges of goods and services. d. achieve a common denominator for measuring the value of goods and services. e. ascertain the liquidity of financial assets.
Absolute advantage is irrelevant, because knowing the absolute number of labor hours required to produce a good does not tell us if we can benefit from trade
a. True b. False Indicate whether the statement is true or false