When a Teacher in a Private School Points Out to Her

question 110

Multiple Choice

When a teacher in a private school points out to her high school principal that since there are empty seats in all classrooms, the cost of additional students is really zero, she is using the

• A)law of comparative advantage.
• B)principle of marginal analysis.
• C)theory of externalities.
• D)notion of the cost decreases of the service sector.
• E)concept of opportunity cost.

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Definitions:

Real Assets

Tangible, physical assets such as real estate, commodities, and natural resources, which have intrinsic value due to their substance and physical properties.

Common Stock

Represents ownership shares in a corporation, giving holders a claim on part of the company's profits and assets.

Flow of Funds Accounts

Financial accounts that track the flow of money among various sectors within an economy, helping to analyze financial markets and monetary movements.

Liabilities

Financial obligations or debts that a company or individual owes, which are recorded on the right side of the balance sheet.