A Business Is Attempting to Find the Best Small Town

question 95

Multiple Choice

A business is attempting to find the best small town in the United States in which to relocate.As part of the investigation, the elevations of all small towns in the United States are researched.Some towns are located high in the Rockies with elevations over 8,000 feet.There are even some towns located in the south central valley of California with elevations below sea level.These elevations can best be described as which level of data?

• A)Interval level
• B)Ordinal level
• C)Nominal level
• D)Ratio level
• E)Relative level

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Definitions:

Decisions at the Margin

Economical decision-making process involving small changes to existing conditions, analyzing the cost and benefit of incremental adjustments.

Additional Costs

Expenses that are not initially accounted for in the budget or pricing but arise during the execution of a project or the production of goods.

Marginal Analysis

Marginal analysis refers to the examination of the benefits and costs of a small (marginal) change in the production, consumption, or allocation of resources.

Ceteris Paribus

A principle in economics that states other conditions remain constant while one variable changes.