What Is Thinking on the Margin

question 2

Multiple Choice

What is thinking on the margin?

• A) Making decisions that are of noneconomic importance.
• B) Making choices that are based on historical precedents.
• C) Making choices that ignore the marginal benefits, but not the marginal costs, of some activity.
• D) Making choices by comparing the additional benefits and additional costs from doing a little bit more of some activity.

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Definitions:

Conformity

Conformity is the act of adjusting one's behaviors or beliefs to align with the norms or standards of a group or society.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Cohesiveness

The degree to which members of a group or team are united in pursuing common goals and how connected they feel to the group.

Collectivism

A cultural or social perspective that emphasizes the importance of the group over individual interests or identities.