If the Marginal Cost of an Activity Exceeds the Marginal

question 476

Multiple Choice

If the marginal cost of an activity exceeds the marginal benefit, then

• A) the activity will occur because the high marginal cost means it must be highly valued.
• B) the forgone alternatives' costs must be increased.
• C) an alternative action will be selected.
• D) the person must concentrate on the activity's total benefits.

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Definitions:

Developing Nations

Countries with a lower standard of living, underdeveloped industrial base, and low Human Development Index relative to other countries.

Foreign Corrupt Practices Act

A U.S. law that prohibits American companies and their subsidiaries from bribing foreign officials to retain or obtain business.

Fines

Monetary penalties imposed as punishment for breaking laws or regulations.

Domestic Concern

Matters or businesses pertaining to the internal affairs or operations of a specific country.