Economic analysis is primarily concerned with marginal changes from the status quo, as a result of a certain action or decision.

Question

Quizplus · Accepted Answer

This statement is true. Economic analysis focuses on examining the impact of changes in economic variables, such as prices or policies, on individual and social welfare. This analysis typically involves evaluating the costs and benefits associated with different courses of action, based on the marginal changes they produce relative to the current situation.

Economic Analysis Is Primarily Concerned with Marginal Changes from the Status