When Economic Choice Involves an Adjustment to an Existing Situation

question 138

Multiple Choice

When economic choice involves an adjustment to an existing situation, marginal analysis

• A)has no practical applications or real-world uses
• B)eliminates incorrect decisions and bad choices
• C)involves comparing the additional costs and additional benefits of an activity before deciding
• D)involves examining only the total costs and total benefits of an activity before deciding
• E)none of the above

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Definitions:

Common Stock

Equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends or stock appreciation.

Consumption Tax

A tax on the purchase of goods or services, levied at the point of sale.

Ad Valorem Tax

A tax based on the assessed value of an item, such as real estate or personal property, commonly used in property taxes.

Excise Tax

A tax imposed on the sale or use of specific products or services, often included in the price of the item.