Consider the decision to read your textbook on economics regularly. Which of the four core principles of economics applies to the notion that each extra page you read and each extra problem you complete will help you increase your understanding of the material?
A)Cost-benefit principle
B)Opportunity cost principle
C)Marginal principle
D)Interdependence principle

Question

Quizplus · Accepted Answer

The Marginal principle states that people make decisions by comparing the additional ("marginal") benefits to the additional costs of an action. In this case, each extra page and each extra problem completed can be seen as marginal benefits that increase the understanding of the material, while the time and effort spent reading and completing problems are the marginal costs. By continuing to increase the marginal benefits (understanding) while keeping the marginal costs (time and effort) in mind, the decision to read the textbook regularly becomes rational and beneficial.

Consider the Decision to Read Your Textbook on Economics Regularly