Quizizz--Economics (Module 1--Element 1.3)--Marginalism

What is the principle of decision-making mentioned in the text?

• Decisions should be made when total benefits exceed total costs.

• Decisions should be made when marginal benefits exceed marginal costs.

• Decisions should be made when marginal costs exceed marginal benefits.

• Decisions should be made based on total costs alone.

What does the term "marginal" refer to in decision-making?

• Total cost of all units.

• Additional cost of producing or purchasing one more unit.

• Total benefit of all units.

• Average cost of all units.

How do individuals make decisions according to the text?

• By comparing total values of all options.

• By comparing marginal values of options.

• By choosing all-or-nothing options.

• By considering only the total costs.

What should a business executive consider when planning to build a new factory?

• The color of the building

• The marginal benefits versus the marginal costs

• The location of the nearest restaurant

• The number of employees in the company

Why might reducing pollution to zero be considered wasteful according to marginal thinking?

• It would cost too much money

• It would require too many people

• The marginal benefit would decline to almost zero

• It would take too much time

What happens to the marginal benefit of reducing pollution as the amount of pollution decreases?

• It increases

• It stays the same

• It decreases

• It becomes negative

What happens to the marginal benefit and marginal cost as pollution is reduced?

• Marginal benefit goes up, marginal cost goes down

• Marginal benefit goes down, marginal cost goes up

• Both marginal benefit and marginal cost go up

• Both marginal benefit and marginal cost go down

When is additional pollution reduction considered wasteful?

• When marginal cost is less than marginal benefit

• When marginal cost equals marginal benefit

• When marginal cost exceeds marginal benefit

• When marginal benefit exceeds marginal cost

In the hypothetical situation, what is the total damage caused by pollution?

• $1 million

• $10 million

• $100 million

• $1 billion

What is the total cost of cleanup in the hypothetical situation?

• $1 million

• $10 million

• $100 million

• $1 billion