Marginal — Social Studies definition
Concerning an additional change rather than an entire total.
Where it is taught
- Scarcity, Opportunity Cost & Decisions at the Margin — Economic Foundations & Market Decisions, Government, Civic Participation & Economics, Grade 12
In use
Marginal reasoning compares an additional benefit with an additional cost.
Scarcity, Opportunity Cost & Decisions at the Margin
Questions using marginal
Problem 1
An irrecoverable $80 payment is past; continuing costs $30 and adds $20 of benefit relative to the best alternative. Evaluate the marginal comparison.
Answer and explanation
Continuing has $10 more additional cost than benefit under the stated comparison. The sunk $80 does not differ between remaining choices and cannot be recovered by counting it as a reason to add another loss. Other future effects are excluded.
Response criteria
- Explain the relevant institution or economic concept accurately; show correct calculations where needed.
- Connect supplied evidence and stated assumptions to an explained conclusion.
- Compare feasible options and their effects on different people without stereotypes.
- Identify a limitation, tradeoff, uncertainty, or condition that qualifies the conclusion.