Support for Free Public Education Based on the Idea That

question 174

Multiple Choice

Support for free public education based on the idea that the demand curve for educational services does not include all the social benefits of education relies on the

• A) principle of comparative advantage.
• B) principle of increasing opportunity costs.
• C) scarcity principle.
• D) equilibrium principle.
• E) cost-benefit principlE.

---

Definitions:

Margin of Safety

Margin of safety represents the difference between actual or projected sales and the break-even sales levels, measuring the buffer a company has before it incurs a loss.

Break-Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.