Unit 1: Standard 2 Flashcard Review

Front

What is the definition of marginal benefit in economics?

Back

The additional benefit received from consuming one more unit of a good

Tags

GA.9-12.SSEF2

Front

Which term describes the additional cost incurred from producing one more unit of a good?

Back

Marginal cost

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GA.9-12.SSEF2

Front

What does it mean when marginal benefit equals marginal cost?

Back

The action is rational

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GA.9-12.SSEF2

Front

Which of the following is an example of a positive incentive for individuals? A tax on cigarettes, A fine for littering, A scholarship for good grades, A penalty for late library books

Back

A scholarship for good grades

Tags

GA.9-12.SSEF2

Front

Who can respond to incentives in predictable ways according to economic theory?

Back

Individuals, businesses, and governments

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GA.9-12.SSEF2

Front

If the marginal cost of producing a product is 5 and the marginal benefit is 7, what should a rational business do?

Back

Increase production

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GA.9-12.SSEF2

Front

A government offers a tax credit for installing solar panels. What type of incentive is this?

Back

Positive incentive

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GA.9-12.SSEF2

Front

A student is deciding whether to study for one more hour. The marginal benefit is a higher test score, and the marginal cost is less time to relax. If the student chooses to study, what does this indicate?

Back

The marginal benefit is greater than or equal to the marginal cost.

Tags

GA.9-12.SSEF2

Front

Which of the following best illustrates a negative incentive for businesses? A government grant for hiring new employees, A tax on pollution emissions, A bonus for meeting sales targets, A discount for early payment

Back

A tax on pollution emissions

Tags

GA.9-12.SSEF2

Front

A company is considering whether to produce an additional unit of a product. The marginal cost is 10 and the marginal benefit is 8. What is the rational decision?

Back

Do not produce the additional unit

Tags

GA.9-12.SSEF2