When Economic Choice Involves an Adjustment to an Existing Situation

question 138

Multiple Choice

When economic choice involves an adjustment to an existing situation, marginal analysis

• A)has no practical applications or real-world uses
• B)eliminates incorrect decisions and bad choices
• C)involves comparing the additional costs and additional benefits of an activity before deciding
• D)involves examining only the total costs and total benefits of an activity before deciding
• E)none of the above

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Definitions:

Executive Budget

The budget prepared and submitted by the executive branch of government, detailing proposed revenues and spending for the forthcoming fiscal period.

Presidential Budget

The federal budget proposed by the president to Congress, outlining government spending priorities for the upcoming fiscal year.

Congress

The legislative branch of the federal government in countries such as the United States, consisting of two houses: the Senate and the House of Representatives, responsible for making laws.

Federal Budget

This refers to the government's estimate of spending and revenue for a specific fiscal year.