Making Choices on the Margin Means

question 119

Multiple Choice

Making choices on the margin means

• A) scribbling on the edges of your notebook paper.
• B) comparing all relevant alternatives systematically and incrementally.
• C) making a decision based on emotions.
• D) making decisions in the largest possible increments.
• E) taking account of all marginal benefits, all opportunity costs, and all sunk costs.

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Definitions:

Capability

The ability or attributes required to perform tasks or achieve certain results effectively.

Stock-Trading Algorithm

A set of rules or procedures designed to automatically guide the buying and selling of stocks in the financial markets.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Fraud

A deliberate deception practiced to secure unfair or unlawful gain, often involving financial transactions.