To Think at the Margin Means to Consider

question 110

Multiple Choice

To think at the margin means to consider:

• A) how nothing remains constant over time.
• B) how people behave in their own self- interest.
• C) how a small change in one variable affects another variable.
• D) how people will decide what to purchase.

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Definitions:

Net Income

The total profit of a company after all revenues and gains are accounted for and all expenses and losses are deducted.

Direct Expense

Costs that can be directly traced to a specific product, service, or department, and is a key factor in the cost of goods sold.

Indirect Expense

Costs that are not directly attributable to a specific cost object, such as a product or service.

Insurance

A contractual arrangement that provides financial protection or reimbursement against losses from an insurance company.