Which Statement Demonstrates One of the Three Principles of Economy-Wide

question 11

Multiple Choice

Which statement demonstrates one of the three principles of economy-wide interactions?

• A)A student chooses to rent a movie with friends,rather than study for an economics quiz.
• B)Your roommate offers to pay for the movie tickets if you drive to the theater.
• C)A city builds a new public park on the grounds of an abandoned warehouse.
• D)In 2008,fearing a recession,Congress approved a White House proposal to rebate some taxes for 2007.

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Definitions:

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a good or service.

Weekly Wage Rate

The amount of compensation a worker receives on a weekly basis for their labor or services.

Elastic Supply

Describes a market situation where the quantity supplied changes significantly due to changes in price.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.