Answers LA-Financial Math A Topic TestQuestion 6

6

QuizMultiple Choice

Topic Test

Question 6 • LA-Financial Math A

One example of thinking at the margin is

Answer

A

determining whether it is better to spend your savings on a new CD player or on a television.

B

deciding whether the benefit of working two extra hours per day is worth the sacrifice of study time.

C

putting all of your money in a savings account because the interest rates are so high.

D

deciding to buy a car you don’t really like because it is significantly less expensive than the one you want.

Explanation

Thinking at the margin means comparing the additional benefit and cost of a small change in what you do. Working two extra hours each day is an incremental change, and the decision weighs the extra benefit of working against the study time sacrificed. That is why the correct choice is deciding whether the benefit of working two extra hours is worth giving up study time.

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