An Editorial in the Paper Argues That a Person Only

question 140

Multiple Choice

An editorial in the paper argues that a person only should be allowed to attend school if the marginal cost of educating that person is less than the marginal benefit of educating that person. The writer's reasoning is an application of:

• A)positive economics.
• B)negative economics.
• C)normative economics.
• D)economic naturalism.

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Definitions:

Spending Multiplier

A concept in economics that represents how changes in autonomous spending lead to changes in total economic output.

Budget Surplus

A situation where a government's revenues exceed its expenditures within a specific period.

Equilibrium Output

The level of output at which the quantity of goods produced equals the quantity of goods consumed, often resulting in market stability.

Short-Run Aggregate Demand

The total amount of goods and services that will be purchased at all possible price levels in an economy in a short period.