By Establishing High and Unrealistic Financial Goals, You Will Probably

question 18

Multiple Choice

By establishing high and unrealistic financial goals, you will probably

• A) improve the likelihood of achieving at least some success.
• B) become discouraged and lose interest in planning.
• C) increase the viability of your plan.
• D) impress your spouse or significant other.

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Definitions:

Marginal Cost

The charges incurred for the production of an additional unit of a good or service.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved due to market inefficiencies.

Consumer Surplus

The difference in planned versus actual spending by consumers on a good or service.

Price Discrimination

A pricing strategy where a firm charges different prices for the same product or service to different consumers, based on their ability to pay, in order to maximize profits.