If a Decision Maker Uses Marginal Analysis, Then the Relevant

question 190

Multiple Choice

If a decision maker uses marginal analysis, then the relevant costs are the

• A)full costs of a particular activity or product.
• B)fixed costs that do not vary with the extra activity or output.
• C)profits obtained on the activity or product.
• D)average costs for a particular activity or product.
• E)additional costs of a particular activity or product.

---

Definitions:

Excise Tax

A tax levied on specific goods, services, or activities, often included in the price of products like gasoline, alcohol, and tobacco.

Tax Revenue

The income received by the government from taxes imposed on individuals and businesses, used to fund public services and government obligations.

Leather Shoes

Footwear made from the hide of animals, treated for durability and flex.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and goods.