The economic way of thinking has to do with:
A) analyzing benefits but not costs.
B) analyzing costs but not benefits.
C) making choices at the margin.
D) making the distinction between microeconomics and macroeconomics.
Ans: C) making choices at the margin.
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The principal lag for monetary policy
a. and fiscal policy is the time it takes to implement policy. b. and fiscal policy is the time it takes for policy to change spending. c. is the time it takes to implement policy. The principal lag for fiscal policy is the time it takes for policy to change spending. d. is the time it takes for policy to change spending. The principal lag for fiscal policy is the time it takes to implement it.
When firm 1 acts as a Stackelberg leader:
A. Firm 2 will earn more than if they compete in a Cournot fashion. B. Firm 1's profit is less than its profit if they compete in a Cournot fashion. C. Firm 2 produces the monopoly output. D. None of the answers is correct.