________ Analysis by Economists Refers to the Attempt to Answer

question 9

Multiple Choice

________ analysis by economists refers to the attempt to answer questions such as should a tax be imposed.

• A)Positive
• B)Negative
• C)Normative
• D)Investigative

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Definitions:

Marginal Benefit

The supplementary value obtained from the consumption of an extra unit of a good or service.

Optimal Quantity

The ideal amount of a good or service that maximizes efficiency or utility, taking into account costs and benefits.

Marginal Curve

Refers to graphs like the marginal cost curve or marginal revenue curve, which show how the cost or revenue changes with an additional unit of output.

Profit-Maximizing Principle

An economic concept that companies aim to achieve where they generate the maximum possible profits by adjusting output levels.