If the Net Private Return of Return Does Not Equal

question 20

Multiple Choice

If the net private return of return does not equal the social return to investment,then there exists a possibility for

• A) arbitrage.
• B) a Pareto improvement.
• C) government intervention.
• D) a private company to make a profit.
• E) B and C

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Definitions:

Law Of Diminishing Returns

An economic principle stating that adding an additional factor of production results in smaller increases in output.

Study Hours

The amount of time allocated by individuals for learning or educational activities.

GPA

Grade Point Average, a standard way of measuring academic achievement in the U.S., usually on a scale from 0.0 to 4.0.