Marginal Analysis Indicates That an Additional Investment Will Be Profitable

question 63

Multiple Choice

Marginal analysis indicates that an additional investment will be profitable as long as the:

• A) inflation rate is less than the interest rate on borrowed funds.
• B) interest rate on borrowed funds exceeds the rate of return on the investment.
• C) rate of return on the investment exceeds the rate at which funds could be borrowed to pay for the investment.
• D) inflation rate is less than the rate of return on the investment.

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Definitions:

School Performance

A measure of how well students achieve or perform academically in their educational setting.

Variable Ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, enhancing motivation to respond.

Fixed Ratio

A schedule of reinforcement where a response is only rewarded after a specified number of responses. It is often used in behavioral psychology.

Variable Interval

A reinforcement schedule where rewards are given after unpredictable time intervals, leading to moderate but steady response rates.