Which question is an example of marginal analysis?
A)What additional output does a family business produce when it hires one more worker?
B)How do tax cuts change the growth rate of median income?
C)What is the impact of a trade embargo on labor cost?
D)Should a commuter take the bus to work instead of driving.

Question

Quizplus · Accepted Answer

Marginal analysis involves examining the effect of a small incremental change on a particular outcome. Option A involves analyzing the impact of hiring one more worker on output, which is an example of marginal analysis. Options B and C involve broader economic trends, while option D involves a binary decision rather than an incremental change.

Which Question Is an Example of Marginal Analysis