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Questions and Answers
What is the concept that focuses on the additional unit of activity in economics?
What is the concept that focuses on the additional unit of activity in economics?
- Marginal (correct)
- Opportunity cost
- Absolute advantage
- Comparative advantage
Which of the following is NOT a common mistake mentioned in the text when making economic decisions?
Which of the following is NOT a common mistake mentioned in the text when making economic decisions?
- Measuring costs and benefits as proportions instead of absolute amounts
- Ignoring opportunity costs
- Comparing prices without considering quality (correct)
- Thinking at the margin
In microeconomics, what type of decision-making is deemed rational according to the text?
In microeconomics, what type of decision-making is deemed rational according to the text?
- Choosing based on emotions
- Choosing based on absolute advantage
- Choosing based on convenience
- Choosing based on comparative advantage (correct)
What does the Cost-Benefit Principle refer to?
What does the Cost-Benefit Principle refer to?
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What is a key aspect of the Incentive principle?
What is a key aspect of the Incentive principle?
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What is considered under the definition of opportunity cost?
What is considered under the definition of opportunity cost?
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In the provided example of whether to walk downtown to save money, what principle is being applied?
In the provided example of whether to walk downtown to save money, what principle is being applied?
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