The marginal factor cost (MFC) is the:
a. value of the additional output that an extra unit of a resource can produce.
b. additional cost of employing an additional unit of a resource.
c. additional cost of producing an additional unit of output.
d. the ratio of the total fixed cost to the total cost of production.
e. ratio of total cost to the total amount of resources employed.
QUESTION 2The phrase in the text, 'human beings are self-interested, not selfish' means that:
a. people are never selfish.
b. people never act in a spiteful or belligerent manner.
c. people never act in a fit of rage.
d. people contribute to charities and they help others.
e. people care only about themselves and their families.
QUESTION 3When a consumer allocates her limited budgetary resources to maximize her well-being, ____ is achieved.
a. the elimination of scarcity
b. market equilibrium
c. consumer equilibrium
d. the maximization of marginal utility
QUESTION 4The demand curve for labor indicates that:
a. as the real wage rate increases, employers will hire more workers.
b. as the nominal wage rate increases, employers will hire more workers.
c. as the nominal wage rate decreases, the real wage rate increases.
d. as the real wage rate increases, employers will hire fewer workers.
e. as the real wage rate decreases the nominal wage rate increases.
QUESTION 5Individuals acting with self-interest:
a. always choose the same options as other rational individuals.
b. never do voluntary work.
c. always try to attain satisfaction at the expense of others.
d. choose options that give them the greatest amount of satisfaction.
e. have a perfectly elastic demand curve.
QUESTION 6When the incremental satisfaction derived from an additional unit of a good or service decreases as more is consumed, it is known as:
a. consumer equilibrium.
b. marginal benefit.
c. diminishing marginal utility.
d. decreasing opportunity cost.
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