The BEST example of making a choice at the margin is whether to: quit your job .
What is decision-making at the margin?
Thinking at the margin means to let the past go and to think forward to the next hour, day, year, or dollar that you expend in time or money. ... Thinking at the margin means weighing those future options, and not focusing on what you did in the previous hour of frustrating circling around.
When making a choice at the margin What should you do?
– Deciding by thinking on the margin involves comparing the opportunity costs and benefits. – This decision-making process is called a cost/benefit analysis. To make good decisions on the margin, you must weigh marginal costs against marginal benefits .
Which of the following is the kind of decisions that can be made at the margin?
| Question Answer | What is the opportunity cost of a decision the most desirable alternative given up for the decision | Which of the following is the kind of decision that can be made at the margin whether or not to hire new workers | What is the factory building an example of physical capital |
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Which is an example of thinking at the margin quizlet?
The word “marginal” means “additional.” The first glass of lemonade on a hot day quenches your thirst, but the next glass, maybe not so much. If you think at the margin, you are thinking about what the next or additional action means for you . Or the use of fewer resources than the economy is capable of using.
How does opportunity cost affect decision making?
How does opportunity cost affect decision making? -Every time we choose to do something, like sleep in late, we are given up the opportunity to do something less , like study an extra hour for a big test. ... The most desirable alternative given up as the result of a decision.
What does thinking at the margin help with?
What does thinking at the margin help compare? Helps by pointing out opportunity cost and benefits . In what way are trade-offs and opportunity cost alike? Both are choices given up in favor of another choice.
How much should I choose at the margin?
Choices Are Made at the Margin. Economists argue that most choices are made “at the margin.” The margin is the current level of an activity. Think of it as the edge from which a choice is to be made. A choice at the margin is a decision to do a little more or a little less of something .
Why do individuals make decisions at the margin?
When individuals make decisions, they do so by looking at the additional cost and benefit of the decision . The cost or benefit of the single decision is called the marginal cost or the marginal benefit. ... In theory, individuals will only choose an option if marginal benefit exceeds marginal cost.
What is the reason for the law of increasing opportunity costs?
The law of increasing opportunity cost states that when a company continues raising production its opportunity cost increases . Specifically, if it raises production of one product, the opportunity cost of making the next unit rises. This occurs because the producer reallocates resources to make that product.
What are the four factors of production?
Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship . The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.
Which of the following is an example of thinking at the margin?
This involves a comparison of the additional (or marginal) benefits and costs of an activity. An example of such rational behaviour would be deciding to drink one more beer or spending one more hour studying only if the additional benefits were greater than the additional costs.
Which of these is most closely associated with opportunity cost?
Q. Which of these is most closely associated with opportunity cost? gross domestic product .
What does it mean to think at the margin quizlet?
the idea that people make decisions after thinking about the costs and benefits of adding or subtracting more or less units of time, money, effort etc . ...
How are thinking at the margin and opportunity costs linked?
the most desirable alternative given up as a result of a decison is known as opportunity cost. when you decide how much more or less to do , you are thinking at the margin. If more resources become available of if technology improves, an ecnomy can increase its level of output and grow.
What does making decisions at the margin mean quizlet?
Making rational decisions “at the margin” means that people. A. make those decisions that do not impose a marginal cost .
