If a Decision Maker Uses Marginal Analysis, Then the Relevant

question 132

Multiple Choice

If a decision maker uses marginal analysis, then the relevant costs are the

• A) full costs of a particular activity or product.
• B) fixed costs which do not vary with the extra activity or output.
• C) profits obtained on the activity or product.
• D) average costs for a particular activity or product.
• E) additional costs of a particular activity or product.

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Definitions:

Unemployment Relief

Government programs or measures designed to provide financial aid or jobs to individuals who are unemployed.

Surplus Food

Food production that exceeds the immediate consumption needs of the population, which can be stored or distributed as needed.

Joblessness

The state of being without employment, often measured as an unemployment rate within an economy.

Bonus Expeditionary Force

A group of World War I veterans who marched on Washington D.C. in 1932 to demand early payment of a promised bonus.