Author Question: Economists use the term marginal to describe costs and benefits a. that are minimal and hardly ... (Read 75 times)

javeds · **on:** Jul 1, 2018

Economists use the term marginal to describe costs and benefits
a. that are minimal and hardly worth noting.
b. that are incremental and thus relevant to decision making.
c. that are noteworthy but not the most important.
d. whose importance can be minimized through hard work.
e. none of the above.

Question 2

If an individual is maximizing his or her utility, his or her marginal rate of substitution of leisure hours for consumption will be:
a. equal to one divided by his or her wage rate.
b. greater than one divided by his or her wage rate.
c. equal to his or her wage rate.
d. less than his or her wage rate.