Which of the Following Is True

question 167

Multiple Choice

Which of the following is true?

• A) Changes in personal costs and benefits will exert a predictable impact on the choices of human decision makers.
• B) Only direct monetary costs matter in making decisions.
• C) If a good is provided free to an individual, its production will not consume valuable scarce resources.
• D) Secondary effects are seldom of importance in economics.

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Definitions:

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Required Share

The portion of equity that must be offered to existing shareholders when new shares are issued.

Ownership

The state or fact of possessing something, often referring to the holding of assets or property.

Staged Investment

The practice of injecting capital into a business in phases based on milestones or performance to reduce the investor's risk.