Which of the Following Is NOT an Example of a Marginal

question 46

Multiple Choice

Which of the following is NOT an example of a marginal question?

• A) How many more years of education must I undertake if I want to get a Ph.D. in economics?
• B) How many more dollars will I earn in my lifetime if I get my Master's degree?
• C) How many students borrow money in order to attend college?
• D) How many more points will I expect to have if I study an hour longer?

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Definitions:

Cash Inflows

Money received by a business from its operational, financing, and investing activities.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument; a measure of the time value of money.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows, reflecting the opportunity cost of capital.

Present Value

Today's value of a future monetary sum or cash flow sequence, determined using a predefined rate of return.