The Difference Between the Value That an Activity Generates and the Cost

question 91

Multiple Choice

The difference between the value that an activity generates and the cost of the activity is called the ________.

• A) equity
• B) liability
• C) overhead
• D) margin

---

Definitions:

Diminishing Returns

A principle stating that as an additional unit of a factor of production is added, while other factors are held constant, the incremental increase in output will eventually decrease.

Nonreproducible

Refers to goods or assets that cannot be exactly replicated or duplicated, often due to uniqueness or specific characteristics.

Single-Tax Movement

The political efforts by followers of Henry George (1839–1897) to impose a single tax on the value of land and eliminate all other taxes.

Land Rent

The payment made for the use of land, typically reflecting the location's value and potential productivity.