For Which of the Following Decisions Would Marginal Analysis Be

question 33

Multiple Choice

For which of the following decisions would marginal analysis be MOST relevant?

• A)Should I invest all of my savings in real estate or should I keep it all in a savings account?
• B)After I graduate from college, should I go to graduate school or should I get a job?
• C)After meeting my basic needs, how should I allocate the remainder of my monthly budget?
• D)Should I keep a pet?

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Definitions:

EKG

A diagnostic tool that records the electrical activity of the heart to identify various heart conditions.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any need for learning.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.