A Rational Decision Maker Takes an Action If and Only

question 168

True/False

A rational decision maker takes an action if and only if the marginal benefit exceeds the marginal cost.

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Definitions:

Imports

Products and services imported into a country from overseas to be sold.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, and bank deposits.

Current Account

A component of a country's balance of payments that measures the trade of goods and services, net earnings on investments, and transfer payments.

Tangible Products

Physical items that can be seen, touched, and used, as opposed to services or digital goods.