The Cost-Benefit Principle indicates that an action should be taken if（）
A. its average benefits exceed its average costs
B. its extra benefit is greater than or equal to its extra cost
C. its total benefits exceed its total costs
D. its net benefit （benefit minus cost） is zero
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Which of the following would not be studied in microeconomics（）
A. Whether to study or watch TV tonight
B. How individual firms decide how much to produce
C. How an early freeze in California will affect the price of fruit
D. Whether the federal budget should be balanced
If a person takes an action if, and only if, the extra benefits from taking that action exceed the extra costs, then that person is（）
A. not rational
B. following the Cost-Benefit Principle
C. following the Scarcity Principle
D. not following the Cost-Benefit Principle
The Cost-Benefit Principle（）
A. provides an abstract model of how people should choose between alternatives
B. provides little insight into how people actually chose between alternatives
C. fully captures how people choose between alternatives
D. describes how people behave once they have enough education
The extra benefit that results from carrying out one additional unit of an activity is the__ of the activity（）
A. average benefit
B. marginal benefit
C. economic benefit
D. total benefit
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