Which term means "making decisions based on what you believe is the best combination of costs and benefits?"

If the United States imposes a tariff of $5 per bottle on French wine, the most likely effect will be to raise the:

A) price of wine in the United States by more than $5 per bottle. B) price of wine in the United States by $5 per bottle. C) price of wine in the United States by less than $5 per bottle, and lower the price of wine in France by less than $5 per bottle. D) price of wine in the United States by less than $5 per bottle without affecting the price of wine in France.

When firms analyze the relationship between their level of production and their costs they separate the time period involved into

A) a fixed period and a variable period. B) morning and evening. C) the short run and the long run. D) 6 months or less; 6 months to 1 year; more than 1 year.