Economics involves "marginal analysis" because:
A)most decisions involve changes in the status quo.
B)marginal benefits always exceed marginal costs.
C)marginal costs always exceed marginal benefits.
D)much economic behaviour is irrational.

Question

Quizplus · Accepted Answer

Marginal analysis involves examining the costs and benefits of a small change in a current situation. Most decisions involve making a change from the current status quo, making marginal analysis crucial in economic decision-making. Therefore, option A is the correct answer. B, C, and D are incorrect since they do not accurately describe the rationale behind marginal analysis.

Economics Involves "Marginal Analysis" Because