Which of the Following Activities Best Illustrates the Use of Marginal

question 33

Multiple Choice

Which of the following activities best illustrates the use of marginal analysis?

• A)Finding the future value of a savings deposit
• B)Finding the opportunity cost of not going to college
• C)Buying a dozen oranges a week because they are priced at $1.00 a dozen instead of $0.10 each
• D)Buying eight oranges a week because the extra satisfaction from four extra oranges is not worth $0.20 to you

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Definitions:

Tax-Deferred Annuity

A financial product that allows for the investment of pre-tax dollars, where the taxes on earnings are deferred until withdrawal.

Feedback Phase

This phase involves gathering and analyzing reactions or responses to a product, service, or process to enhance its effectiveness or performance.

Optimal Asset Allocation

The mix of different asset classes that maximizes return for a specific level of risk tolerance.

Security Selection

The process of choosing individual securities for investment with the goal of achieving the best possible return while managing risk.