Question

1 multiple choice 1 point
what does marginal analysis mean?
analyzing only the benefits of a decision
analyzing small incremental changes in decision making
analyzing the total costs and benefits of a decision

2 multiple choice 1 point
in a perfectly competitive market, who sets the prices?
producers
supply and demand
consumers

3 multiple choice 1 point
why is measuring the market value of goods and services important to calculate gdp?
it helps us assess the productivity of the economy
it helps us compare the productivity of different economies
it takes into account the value of goods and services produced
all of the above

Explanation:

Analyze Question 1

Marginal analysis refers to the examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. In economics, "marginal" means incremental or small changes. Therefore, marginal analysis is about analyzing small incremental changes in decision making.

Analyze Question 2

In a perfectly competitive market, there are many buyers and sellers, and no single buyer or seller has the market power to influence prices. Instead, the interaction of market supply and market demand determines the equilibrium price. Thus, prices are set by supply and demand.

Analyze Question 3

Measuring the market value of goods and services is crucial for calculating Gross Domestic Product (GDP) because it provides a standardized monetary metric. This allows us to assess the overall productivity of the economy, compare the productivity and size of different economies, and account for the total value of all final goods and services produced. Therefore, all of the given reasons are correct.

Answer:

Question 1

• Analyzing only the benefits of a decision
• Analyzing small incremental changes in decision making (Correct answer)
• Analyzing the total costs and benefits of a decision

Question 2

• Producers
• Supply and demand (Correct answer)
• Consumers

Question 3

• It helps us assess the productivity of the economy
• It helps us compare the productivity of different economies
• It takes into account the value of goods and services produced
• All of the above (Correct answer)