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Opportunity cost is the second best
alternative foregone.
Opportunity cost is the second best alternative foregone.
- Rational People Think at the Margin
- The Cost of Something is What You Give Up to Get It (correct)
- People will only take action of the marginal benefit exceed the marginal cost
Marginal changes are small, incremental changes to
an existing plan of action
Marginal changes are small, incremental changes to an existing plan of action
- Rational People Think at the Margin (correct)
- People Face Trade-offs
- The Cost of Something is What You Give Up to Get It
People
Respond to Incentives. Incentive is something that causes a person to act. Because
people use cost and benefit analysis, they also respond to incentives
People Respond to Incentives. Incentive is something that causes a person to act. Because people use cost and benefit analysis, they also respond to incentives
- People Face Trade-offs
- People will only take action of the marginal benefit exceed the marginal cost (correct)
- Rational People Think at the Margin
Trade allows countries to specialize according to
their comparative advantages and to enjoy a greater variety of goods and services
Trade allows countries to specialize according to their comparative advantages and to enjoy a greater variety of goods and services
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