The Benefit from an Additional Unit of a Good or Service

question 45

Multiple Choice

The benefit from an additional unit of a good or service that people other than the consumer of that good or service receives is the

• A) opportunity cost.
• B) marginal external benefit.
• C) marginal private benefit.
• D) marginal social benefit.

---

Definitions:

Time Value of Money

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Employee Morale

The overall satisfaction, outlook, and feelings of well-being that an employee holds in the workplace.

Product Quality

A measure of the attributes or characteristics of a product that fulfills the requirements, expectations, or specifications set by customers and regulations.

Net Present Value

A method used in capital budgeting to analyze the profitability of a projected investment or project by calculating the difference between the present value of cash inflows and outflows.