An Editorial in the Paper Argues That a Person Only

question 140

Multiple Choice

An editorial in the paper argues that a person only should be allowed to attend school if the marginal cost of educating that person is less than the marginal benefit of educating that person. The writer's reasoning is an application of:

• A)positive economics.
• B)negative economics.
• C)normative economics.
• D)economic naturalism.

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Definitions:

Lump-sum Price

This is a total amount agreed upon for a contract that is not itemized or broken down into individual costs or charges.

Relative Market Values

The comparison of an item’s market price to other similar items in the relevant market.

Depreciation Expense

The portion of the cost of a fixed asset that is considered as an expense due to its use, wear, and tear over time.

Estimated Useful Life

The length of time, usually expressed in years or periods, that an asset is expected to be used in business operations.