Which of the Following Is a Question Answered with Positive

question 78

Multiple Choice

Which of the following is a question answered with positive economic analysis?

• A) Should the college reduce tuition for out-of-state residents?
• B) Should the college charge higher tuition for part-time students?
• C) If the college increased its eligibility requirements for enrollment, will class sizes decline?
• D) Should the college eliminate its athletic program to cut its costs?

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Definitions:

Peer Group

A set of companies or individuals that share similar characteristics or interests, often used as a benchmark for performance comparison.

Return on Assets

is a financial ratio that measures how profitably a company can utilize its assets to generate earnings.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profitability that excludes interest and income tax expenses.

Net Income

The total earnings of a company after deducting all expenses from its total revenue, often referred to as the bottom line.