In Order to Determine Whether to Major in Economics,a Rational

question 26

Multiple Choice

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

• A) marginal benefit and marginal cost
• B) opportunity cost and the sunk cost
• C) positive benefits and normative costs
• D) normative benefits and positive costs
• E) self-interest and social-interest

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Definitions:

Cross-Rate

An exchange rate between two currencies derived from their respective exchange rates with a third, common currency.

Exchange Rate

The exchange rate is the value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.

Forward Exchange Rate

The forward exchange rate is the agreed-upon exchange rate for a currency pair to be traded on a future date, protecting against currency fluctuations.

Exchange Rate

How much one currency is valued when converted into another currency.