To Think at the Margin Means to Consider

question 110

Multiple Choice

To think at the margin means to consider:

• A) how nothing remains constant over time.
• B) how people behave in their own self- interest.
• C) how a small change in one variable affects another variable.
• D) how people will decide what to purchase.

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Definitions:

Tax Advantages

Financial benefits derived from tax laws that reduce the amount of tax to be paid by allowing certain deductions, credits, or deferrals.

IRS

The Internal Revenue Service, the United States government agency responsible for tax collection and tax law enforcement.

Signaling Effects

The idea that actions taken by a company, such as dividend payments or changes, can provide information to the market about its future prospects.

Stock Repurchase

A program by which a company buys back its own shares from the marketplace, usually to increase the value of remaining shares.