Question

1. The marginal benefit is the (total, incremental increase in) benefit associated with an increase in the activity. (1 point) 2. Professor Smith researches whether providing government subsidies for daycare will increase the number of women that choose to enter the labor force. Is this a microeconomic or macroeconomic question? (1 point) 3. Professor Nuñez researches whether reducing the income taxes and government spending on national defense by the same amount leads to an increase or a reduction in Gross Domestic Product. Is this a microeconomic or macroeconomic question? (1 point) 4. "An increase in the capital gains tax rate reduces the total amount of business investment in the economy." Is this a positive or normative economic statement? (1 point) 5. "The government should provide free childcare to increase gender equity in the labor market." Is this a positive or normative economic statement? (1 point) 6. Jen is trying to decide what to do this Friday night. She prefers to go to a party off-campus, but also does not mind staying in and watching a movie. She just really does not want to study. (2 points) 1. Which option is Jen's rational choice? B. What is Jen's opportunity cost of making her rational choice? 7. An individual or society that is more productive than another individual or society at producing a particular good is said to have an) (comparative, absolute) advantage in the production of that good. (1 point) 8. An individual or society that can produce a specific good at a lower opportunity cost than another individual or society is said to have an) _(comparative, absolute) advantage in the production of that good. (1 point)

Answer 1

1. incremental increase
(Marginal benefit is the change in total benefit or it is the additional benefit.)

2. This is a micreconomic question as it is related to the behaviour of women.

3. This is a macreconomic question as it is related to the economy.

4. This is a positive statement as it is based in facts.

5. This is a normative statement because it is an opinion.

(Note: As per Chegg's policy, 4 MCQs are to be answered at a time.)