Study Tip Decision making based on the marginal principle is the basis for all decisions in this book.
Be sure you understand the concepts of marginal benefit and marginal cost.
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2.2 The Marginal Principle Economics is concerned with making choices. Doing so will increase our total well-being by the difference between the marginal benefit and the marginal cost. These are each sequential steps, and thus we can make relevant comparisons between them.
To make a good decision, we compare the marginal benefit, the additional benefit resulting from a small increase in some activity, with the marginal cost, the additional cost resulting from a small increase in some activity.
If they are equal, we are at the optimal amount of the activity. Let’s review two Applications that answer key questions we posed at the start of the chapter: What are society’s tradeoffs between different goods?The American Psychological Association gives formatting, stylistic and citation guidelines to medical and social science writers publishing in academic journals.Many high school teachers and college professors ask English composition students to use APA guidelines when formatting research paper assignments.It requires that writers use standard 8.5 by 11 inch paper.It also states that writers should divide their papers into four sections: title page, abstract, body and reference list.A marginal change refers to a small change in some activity. APPLICATION 2: THE OPPORTUNITY COST OF MILITARY SPENDING If society has a fixed amount of money to spend on goods and services, buying one type of good or service means we sacrifice the opportunity to buy others.You can think of a marginal change as taking the next step in a logical sequence. In this example, 0 billion can pay for the war in Iraq or 13 million children enrolled in Head Start programs.You would never, for instance, compare the salary of someone with a Ph. To see this idea in another way, suppose that your state legislature, in an attempt to make college more affordable, gives each full-time college student 0 to offset the cost of textbooks.The state now has less money to spend on the other goods and services the state provides, such as police patrols and highway maintenance.To format your keyword list properly, place the word "Keywords" in italics, put a colon after it and center align the list.Citations are an another important component of American Psychological Association Style.