An Increase in the Marginal Cost of an Activity Necessarily

question 121

True/False

An increase in the marginal cost of an activity necessarily means that people will no longer engage in any of that activity.

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Definitions:

Medical Insurance

An insurance policy that covers the cost of medical and surgical treatments for the policyholder.

FICA Tax

Federal Insurance Contributions Act tax; a U.S. payroll tax funding Social Security and Medicare, paid by both employees and employers.

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Medical Insurance

Insurance that reimburses the costs associated with medical and surgical care received by the insured individual.