4
QuizMultiple Choice

Making Spending Decisions — Quiz

Question 4 • Personal Finance

What helps a consumer determine the quantity of something to buy?

Answer
A
marginal cost
B
marginal error
C
marginal comparison
D
marginal benefit

Explanation

A consumer decides how much to buy by comparing the marginal benefit of one more unit with its price or cost. The consumer buys additional units as long as the added benefit is worth the added cost, stopping when that is no longer true. Therefore, marginal benefit helps determine the quantity to buy.

AI-written and checked against the verified answer.

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