A Choice Made by Comparing All Relevant Alternatives Systematically and Incrementally

question 50

Multiple Choice

A choice made by comparing all relevant alternatives systematically and incrementally is

• A)a sunk cost.
• B)a choice on the margin.
• C)a choice made in the social interest.
• D)a benefit.
• E)an opportunity cost.

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Definitions:

Demand for Money Schedule

A representation of the relationship between the quantity of money people wish to hold and the interest rate, other factors being constant.

Quantity of Money

The total amount of money in circulation or in existence within a particular economy.

Interest Rate

Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Credit Cards

Financial instruments issued by banks that allow holders to borrow funds at the point of sale, intended for short-term financing with the obligation of paying back the borrowed amount plus interest.