What does the word "marginal" mean in economics? What is a marginal benefit? What is a marginal cost? What is marginal analysis?
What will be an ideal response?
In economics, the word "marginal" means "extra" or "additional." Marginal benefit is the additional benefit received from continuing with an activity. Marginal cost is the additional cost associated with continuing with an activity. Marginal analysis involves comparing marginal benefits and marginal costs.
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Use the following graph of the demand for coffee to answer the question below.
Refer to the three demand curves for coffee. Which of the following would shift the demand for coffee from D1 to D3?
A. a decrease in the price of coffee B. a decrease in the number of buyers of coffee C. an expected increase in the price of coffee in the future D. an increase in the number of buyers of coffee
Marginally attached workers
A) are not looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. B) are working part-time, but they want full-time work. C) don't have jobs and are pessimistic about their chances of finding a suitable job. D) have a bad attitude towards work.
When the Fed injected newly made money into the economy by buying bonds, it:
A. was practicing quantitative easing. B. was trying to avoid a deflationary period similar to Japan. C. inserted over $1 trillion of new money into the economy. D. All of these statements are true.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.