The Economic Way of Thinking Entails

question 76

Multiple Choice

The economic way of thinking entails:

• A)the analysis of benefits but not costs.
• B)the analysis of costs but not benefits.
• C)making choices at the margin.
• D)making the distinction between microeconomics and macroeconomics.

---

Definitions:

Costs

Expenses incurred in the production of goods or in the provision of services, including labor, materials, and overheads.

Benefits

The advantages or positive outcomes gained from actions or decisions, often considered in economic, social, or health contexts.

Incentive

A reward or benefit that motivates or encourages a specific action or behavior.

Tradable Pollution Permits

A market-based approach to controlling pollution by allocating permits that allow the holder to emit a certain amount of pollution, which can be traded among companies.