A Change in a Marginal Benefit or Cost Will

question 36

Multiple Choice

A change in a marginal benefit or cost will

• A) increase consumption.
• B) decrease production.
• C) cause an individual to make a rational choice.
• D) increase sunk costs.
• E) change incentives.

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Definitions:

Accounting Practice

The procedures and guidelines followed by accountants to record, report, and manage financial transactions and positions.

Illegal Restraint

Actions or measures that unlawfully restrict freedom or movement, often referring to anticompetitive practices or personal liberties.

Public Policy

Government policies designed to address public issues and create laws that reflect the attitudes and beliefs of the general public.

Adhesion Contract

A standardized contract drafted by one party, usually the stronger party, where the weaker party has little to no ability to negotiate terms.