In making your decision whether to spend a week on the Gold Coast during the mid-semester break, you compare all the other activities you could undertake. As a result, you
A) are making a choice on the margin.
B) limit the cost and the benefit you can gain.
C) are not making a rational choice.
D) must have made a choice in the social interest.
E) do not face an opportunity cost.

Question

Quizplus · Accepted Answer

Comparing different activities and weighing the costs and benefits is an example of making a decision on the margin. This means making a decision based on incremental changes in costs and benefits rather than looking at the overall picture. By comparing the benefits of spending a week on the Gold Coast with the benefits of other activities, you can make a decision on whether it is the best use of your time and money during the mid-semester break.

In Making Your Decision Whether to Spend a Week on the Gold