Marginal analysis studies how individuals decide:
A)whether to live on the margin of society.
B)whether to do a bit more of an activity versus a bit less of it.
C)whether to go to college.
D)how much down payment to make when buying stocks.

Question

Quizplus · Accepted Answer

Marginal analysis is the study of how individuals make decisions about doing a little more or a little less of an activity, based on the additional benefits and costs associated with that decision. Choice A is not related to marginal analysis, while choices C and D refer to specific decisions that may or may not involve marginal analysis.

Marginal Analysis Studies How Individuals Decide