Macroeconomics: Principles, Problems, & Policies 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0-07766-077-3
ISBN 13: 978-0-07766-077-2

Chapter 1 - Limits, Alternatives and Choices - Discussion Questions: 2

Answer

Answers will vary, but possible answers include: * The decision to continue education for an extra year * The decision to spend an extra hour preparing for a test * The decision to purchase an extra drink with lunch

Work Step by Step

Students should consider any situation or decision where choosing an extra unit of something will make them better off than currently are. If their utility is higher by making this choice - for example they will get better grades by spending an extra unit studying - then the marginal benefit is greater than marginal cost.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.