CLEP Microeconomics Exam Prep

Answer - C - Marginal analysis is the term that economists use to refer to the small changes that are made in regard to economic policy and life.

Key Takeaway: Nearly every decision that is made in regard to economic policy and economic life is made in very small increments-not large dramatic changes. When looking at these increments, economists use the term marginal analysis to refer to the decisions and to look at the pros and cons of each small shift and any possible alternatives. Marginal thinking is one of the primary tools used in microeconomics.