In Order to Determine Whether to Major in Economics,a Rational

question 26

Multiple Choice

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

• A) marginal benefit and marginal cost
• B) opportunity cost and the sunk cost
• C) positive benefits and normative costs
• D) normative benefits and positive costs
• E) self-interest and social-interest

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Definitions:

Pension Liability Adjustments

Modifications made to the recorded amounts of pension obligations to reflect changes in estimates, plan amendments, or actuarial assumptions.

Investor

The company investing in another company’s stock.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically including features like the principal amount, interest rate, and maturity date.

Equity Securities

Financial instruments that represent ownership in a company or an entitlement to a share in its profits.