Related to the Economics in Practice on Page 172: When

question 292

Multiple Choice

Related to the Economics in Practice on page 172: When there are only a few empty cabins on a large cruise ship, the marginal cost of adding extra passengers to occupy those cabins

• A) is probably very low.
• B) will be negative.
• C) is generally quite high.
• D) will primarily depend on the number of customers waiting to travel.

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Definitions:

Compounded Monthly

Interest calculated on the initial principal and also on the accumulated interest from previous periods on a monthly basis.

RRSP

Registered Retirement Savings Plan, a savings account, registered with the Canadian government, that defers income taxes on retirement savings until withdrawal.

Accumulate

The act of gathering or collecting over a period of time, often resulting in an increase in quantity.

Ordinary Annuity

An annuity where the payments are made at the end of each period for a fixed length of time.