The Cost-Benefit Principle:
A. provides little insight into how people actually chose between alternatives.
B. provides an abstract model of a rational person should choose between alternatives.
C. describes how people behave once they have enough education.
D. fully captures how people choose between alternatives.
Answer: B
You might also like to view...
The size of the expenditure multiplier is influenced by
i. the marginal propensity to consume. ii. autonomous spending. iii. the marginal tax rate. A) i only B) ii only C) iii only D) i and iii E) ii and iii
Answer the following statements true (T) or false (F)
1) Any person without a job is considered to be unemployed. 2) Higher unemployment rates are linked with higher crime rates and higher rates of physical and mental illness. 3) Inflation reduces the purchasing power of a person's income and savings. 4) From 1995 until the start of the recession in 2007, the U.S. economy grew at the same rate as the economy of Japan.