If a Student Enrolls in an Additional Course at the University

question 18

Multiple Choice

If a student enrolls in an additional course at the university, an economist would conclude that:

• A)​the total benefit that the student expects to receive as a result of completing her college degree exceeds the total cost of her college education.
• B)​the student is not following the rule of rational choice.
• C)​the student must not be involved in extracurricular campus activities.
• D)​the expected marginal benefit of an additional course must exceed the expected marginal cost of the course.

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Definitions:

Uncollectible Expenses

Costs resulting from customers' failure to pay what they owe, also known as bad debts.

Percent of Sales Method

A financial forecasting model that predicts future variables, such as expenses and inventory levels, as a percentage of projected sales.

Credit Sales

Sales of goods or services that are paid for at a later date, extending credit to customers.

Bad Debt Expense

An expense reported by businesses to account for receivables that are no longer collectible, affecting the net income.