The Benefit from an Additional Unit of a Good or Service

question 157

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

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Definitions:

Investor and Creditor Risk

The level of uncertainty faced by investors and creditors due to the possibility of a company failing to meet its financial obligations.

High Ratio

A term that may refer to a financial ratio that is significantly above the industry average, indicating a particular aspect of a company's financial health, performance, or risk level.

Retired

Pertains to assets that have been removed from operational use, often due to age or obsolescence.

Unamortized Premium

The portion of a bond premium that has not yet been amortized or expensed over the bond's life, reflecting the difference between the bond's face value and its higher purchase price.