Improvements in a Person's Financial Position Are the Result Of

question 23

Multiple Choice

Improvements in a person's financial position are the result of:

• A)increased liabilities.
• B)reductions in earnings.
• C)increased savings and investments.
• D)increased purchases on credit.
• E)lower amounts deposited in savings.

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Definitions:

Productive Efficiency

Productive efficiency occurs when an economy is operating at its maximum capacity, producing goods and services at the lowest possible cost per unit.

Marginal-Cost-Marginal-Benefit Rule

The marginal-cost-marginal-benefit rule states that optimal decision-making occurs when the marginal cost of an action equals its marginal benefit, ensuring efficient resource allocation.

Optimal Project Size

The most efficient scale of a project, considering factors like cost, resources, and expected benefits, to achieve the best possible outcome.

Marginal Costs

The cost uplift realized by the manufacture of an extra unit of a product or service.