People Make Decisions at the Margin

question 155

Multiple Choice

People make decisions at the margin. Thus, when deciding whether to purchase a second car, they would compare

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

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Definitions:

Chesapeake Region

An area in the United States surrounding the Chesapeake Bay, known for its unique cultural heritage, history, and environmental significance.

Mercantilism

An economic theory and practice prevailing in Europe from the 16th to the 18th century, promoting governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers.

Olaudah Equiano

An African writer and abolitionist who was enslaved as a child, bought his freedom, and wrote an autobiography detailing his experiences.