When Considering Whether or Not to Consume a Second Slice

question 201

True/False

When considering whether or not to consume a second slice of cake, an individual is following marginal thinking if she compares the total cost of consuming both the first and second slices with their total benefit before making a decision.

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Definitions:

Corporate Profits

Corporate profits denote the earnings of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Proprietors' Profits

The earnings retained by the owners after all expenses have been deducted from the gross income of an unincorporated business.

National Income

The total value of all income earned by the residents of a country in a given period, including wages, profits, and investment returns.

Entrepreneur

An individual who organizes, operates, and assumes the risk for a business venture, often introducing innovations and facilitating economic development.