What is marginal analysis?
What will be an ideal response?
Marginal analysis is a method for calculating optimal choicesthe choices that best promote the decision maker’s objective. It works by testing whether, and by how much, a small change in a decision will move things toward or away from the goal. It helps consumers determine their optimal purchase decisions.
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The modification of manufacturing processes so as to reduce the resulting environmental damage is an endeavor that requires capital investment, labor inputs, and technology. What then follows from this statement?
A) Economic growth can benefit the environment. B) Environmental damage is a regrettable but necessary side effect of economic growth. C) The condition of the environment will be better in slower-growing countries. D) The way to reduce pollution is to educate people about its effects.
The designate M1 measure of money consists of
A) the most liquid types of money in the U.S. system. B) small time deposits only. C) credit cards and ATM cards. D) gold and gold coins.
Which of the following relationships reflect the law of supply?
a. an increase in QS => a decrease in Price b. a decrease in Price => an increase in supply c. an increase in Price => an increase in QS d. a decrease in Price => an increase in QS
If the MRP of labor decreases, labor:
A. demand will decrease. B. demand will increase. C. supply will increase. D. supply will decrease.