Which of the following is a question 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)When a large corporation lays off workers, how do profits change if sales remain constant?
D)Should a commuter take the bus to work rather than driving.

Question

Quizplus · Accepted Answer

Marginal analysis examines the effect of a change in one unit of a variable on another variable. In this case, the question is asking about the additional output produced when hiring one more worker, which is an example of marginal analysis. Choices B and C are not marginal analysis questions as they do not focus on the effect of a specific change in one unit on another variable. Choice D is also not a marginal analysis question as it is asking for a decision between two options rather than analyzing the effect of a change in one unit.

Which of the Following Is a Question of Marginal Analysis