Exam 2: The Key Principles of Economics

The face value of money or income is called its ________ value.

When applying the marginal principle, you should pick the level at which the activity's marginal benefit equals its marginal cost.

If you have $10,000 to start a lawn-cutting business, the interest rate is 4 percent, your cost of equipment is $3,000, and the earnings you sacrifice from working at another job are $32,000, your yearly cost of doing business would be

Recall the Application about the use of fertilizer and its impact on crop yields to answer the following question(s). The table is taken from this Application. Fertilizer and Corn Yield -Refer to the table above. The farmer increased his total production of corn by 9 bushels per acre after applying