When Deciding Whether to Buy a Second Car, Marginal Analysis

question 94

Multiple Choice

When deciding whether to buy a second car, marginal analysis indicates that the purchaser should compare the:

• A) benefits expected from two cars with the cost of both.
• B) additional benefits expected from a second car with the cost of the two cars.
• C) dollar cost of the two cars with the potential income that the cars will generate.
• D) additional benefits of the second car with the additional cost of the second car.

---

Definitions:

Personalities

The blend of traits or attributes that create a person's unique personality and ways of acting.

Moods

A temporary state of mind or feeling that influences an individual's emotional state, distinct from emotions in that they are less specific and longer-lasting.

Cognitive Development

The study of how thinking, problem-solving, and intelligence evolve as an individual grows from infant to adult.

Vygotsky

A psychologist known for his theory on social development and the concept of the Zone of Proximal Development, emphasizing the role of social interaction in learning.