An Editorial in the Paper Argues That Students Should Only

question 9

Multiple Choice

An editorial in the paper argues that students should only be allowed to attend school so long as the marginal cost of educating that student is less than the marginal benefit of that student's education. 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:

World Price

The international market price at which goods are traded between countries.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.

Wool Production

The process of breeding, raising, and shearing sheep to obtain wool, a natural fiber used in textiles.

Elasticity Of Demand

An indicator of the degree to which demand for a product is affected by variations in its price, reflecting the responsiveness of the quantity demanded to price fluctuations.