The Cost-Benefit Principle Predicts That

question 50

Multiple Choice

The Cost-Benefit Principle predicts that:

• A) no one will perform volunteer services.
• B) people will always take the highest-paying job they are offered.
• C) benefits are more important than costs in making a decision.
• D) people will tend to do more of something when its benefits are greater.

---

Definitions:

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the value agreed upon by a willing buyer and seller.

Capital Lease

A lease classified as a purchase by the lessee for accounting purposes, as it involves the transfer of ownership rights of the asset to the lessee.

Transactions Costs

Expenses incurred when buying or selling goods and services, which can include fees, taxes, and other charges.

Buying And Selling

The basic actions of purchasing an asset and then selling it, fundamental processes in any market.