The Principle That Individuals and Firms Pick the Activity Level

question 138

Multiple Choice

The principle that individuals and firms pick the activity level where the incremental benefit of that activity equals the incremental cost of that activity is known as the

• A) marginal principle.
• B) principle of opportunity cost.
• C) principle of diminishing returns.
• D) spillover principle.

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Definitions:

Pyroclastic Eruptions

Volcanic eruptions characterized by the explosive expulsion of ash, lava bombs, and gases at high velocity.

Suburbs of Tacoma

Areas surrounding Tacoma, Washington, typically residential, offering amenities and a lifestyle distinct from the urban center.

Summit of the Volcano

The highest point or peak on a volcano, which is often the location of the central vent or crater.

Mudflow Deposits

Sedimentary accumulations resulting from the flow of mud, often triggered by volcanic activity or heavy rainfall, that can cover large areas and solidify over time.