Marginal Thinking Is Best Demonstrated By

question 26

Multiple Choice

Marginal thinking is best demonstrated by:

• A) choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time.
• B) deciding to never purchase a coat made with animal skins or furs
• C) acquiring the information relevant to a choice before making that choice
• D) measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, granting them certain rights and potentially a share in its profits.

Benefits Principle

The idea that people should pay taxes based on the benefits they receive from government services

Taxes

Obligatory charges imposed by authorities on the earnings of employees and the profits of businesses, or applied to the price of various commodities, services, and financial activities.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits to society.