Which of the Following Is the Best Example of a Marginal

question 66

Multiple Choice

Which of the following is the best example of a marginal change?

• A)The price of housing in Denver increased by 6 percent last year.
• B)Kim gets a big promotion at work.She also gets a raise from $35,000 per year to $55,000 per year.
• C)Mark graduates from college and takes a job.His income increases from $10,000 per year to $35,000 per year.
• D)A drought hits the upper Midwest and the price of wheat increases from $4.00 per bushel to $6.50 per bushel.

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Definitions:

Compounded Quarterly

Interest calculated and added to the principal four times a year.

Purchase Contract

A legal agreement between a buyer and a seller detailing the terms and conditions of a purchase.

Return

The profit or loss generated from an investment over a certain period of time.

Compounded Annually

A compound interest calculation made once per year.