Marginal Analysis Refers To

question 2

Multiple Choice

Marginal analysis refers to:

• A) points that lie on the budget set
• B) costs that were incurred in the past and cannot be recovered, and thus should not affect current decisions
• C) comparing the benefits and costs of choosing a little more or a little less of a good
• D) whatever must be given up to obtain something that is desired

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Definitions:

Compounded Monthly

The routine of accruing interest monthly, which incorporates calculating interest on the initial principal as well as on the interest that has previously been accrued.

Salary Increase

An increment in the amount of money earned by an employee on a regular basis, often annually or based on a performance review.

Total Return

The overall return on an investment over a specific period, including both capital gains and income, such as dividends or interest.

Quarterly Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to shareholders every quarter.