Making a Decision "On the Margin" Involves Comparing

question 16

Multiple Choice

Making a decision "on the margin" involves comparing:

• A) additional benefits against additional costs.
• B) total benefits against total costs, which include benefits and costs from past decisions.
• C) sunk costs against opportunity costs.
• D) the most benefit you could expect to get without considering costs.

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Definitions:

James II

Brother to Charles II, he became the king of England, Scotland, and Ireland, remembered for his attempts to reinstate Catholicism and his subsequent ousting in the Glorious Revolution.

Governor Edmund Andros

A colonial administrator in North America, known for his unpopular governorship in the Dominion of New England, where his actions sparked resistance among the colonists.

Glorious Revolution

The overthrow of King James II of England in 1688 by a union of Parliamentarians and the Dutch stadtholder William III of Orange-Nassau, leading to a constitutional monarchy in England.

Charter Revoked

A situation where an official document granting rights, privileges, or authority is taken back or annulled by the granting authority.