When Economic Choice Involves an Adjustment to an Existing Situation

question 138

Multiple Choice

When economic choice involves an adjustment to an existing situation, marginal analysis

• A)has no practical applications or real-world uses
• B)eliminates incorrect decisions and bad choices
• C)involves comparing the additional costs and additional benefits of an activity before deciding
• D)involves examining only the total costs and total benefits of an activity before deciding
• E)none of the above

---

Definitions:

Corporate Governance

Corporate governance is the system of control and performance monitoring of top management.

Outside Directors

Board members who are not part of the company's day-to-day operations, providing independent, unbiased perspectives on governance and strategy.

Sustainable Strategic Competitiveness

Refers to a company's capability to formulate and implement a value-creating strategy based on business sustainability principles.

Reactor Strategy

A reactor strategy is a type of business approach where an organization reacts to external forces and changes without a consistent strategic plan, often in response to immediate challenges rather than long-term goals.