What ia thinking on the margin? Malingeth. are of nonecononic importance o b. Ma

Question

What ia thinking on the margin? Malingeth. are of nonecononic importance o b. Making chaices that ignore the marginal benefes bu t the margnal costs of some activity C Maloing choices that are based on hintorical precedenes d Making chaices by comparing the addinional benefits and additional coses from doing a le bit more of some activity fconomists believe people make dedisions by thinking about benelies but mot cots ? dang.is.sm" rereneur adatnen anemtrgplan or amen. Select one Which of the folowing factors wouid cause the change in the fere Select one C an increave in income for an inferior good

Explanation / Answer

Question 5

D. Thinking at the margin means comparing additional benefits with additional costs. Margin means additional. We compare the benefit of one more unit ( could be a pizza piece) with the cost of that one more unit ( the cost of the pizza piece) to make a decision.

Question 6

B. Comparing additional benefits with additional costs.

Question 7

True

Question 8

C

A shift in a demand curve occurs when a good's quantity demanded changes even though price remains the same. An increase in the price of substitutes will shift the demand curve to the right, whereas, an increase in the the price of complements will shift the demand curve to the left.

Choice A is wrong since it is a movement along the demand curve.

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