DO NOT EXPLAIN, JUST SELECT A, B, C, OR D

According to the economic way of thinking somebody has an incentive to take a given action...

Select one:

a.

As long as the marginal benefit is greater than zero

b.

Any time the total benefit is greater than the total cost

c.

Only if the marginal cost = 0

d.

If the marginal benefit is greater than the marginal cost

According to the economic way of thinking, as the quantity of an action increases, the marginal cost of that action _________, and the marginal benefit from that action_________.

Select one:

a.

increases ; stays the same

b.

stays the same ; decreases

c.

increases ; decreases

d.

decreases ; increases

Suppose you hear someone saying more savings is bad for the economy. They say that spending money on consumer goods keeps the money moving through the economy, and savings stops this flow. According to economics, is this line of thinking correct?

Select one:

a.

Yes, since savings reduces investment in physical capital.

b.

Yes, since savings sits idle and becomes an unused resource.

c.

No, since savings feeds investment and increases the standard of living of an nation.

d.

No, since savings is not related to the standard of living.

Which of the following is an example of physical capital:

Select one:

a.

The money an entrepreneur uses to start their business

b.

The knowledge a teacher gains from going to a conference

c.

The solar energy used to power a home

d.

The power drill a carpenter uses to install cabinets