To think at the margin means to consider:
A. how nothing remains constant over time.
B. how a small change in one variable affects another variable.
C. how people behave in their own self-interest.
D. how people will decide what to purchase.
Answer: B
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Saving is important for economic growth because
A) a higher saving rate will decrease the standard of living in the future. B) a higher saving rate increases investment spending. C) more saving increases consumption immediately. D) a higher saving rate reduces investment spending.
One prediction about monopolistic competition is that it has higher unit costs than perfect competition. But it is unreasonable to conclude that monopolistic competition is therefore bad for consumers because
A) consumers benefit from an increased variety of products. B) higher production costs means more employment. C) consumers benefit from products becoming more homogeneous. D) consumers benefit from lower prices. E) consumers benefit because of an increase in quantity available.