Grades 9-12
A Primer on Marginal Analysis
Objective
Students will be able to:
- Recognize the importance of marginal analysis.
Standard
Standard: 2
- Students will understand that: Effective decision making requires comparing the additional costs of alternatives with the additional benefits. Many choices involve doing a little more or a little less of something: few choices "are all or nothing" decisions.
- Students will be able to use this knowledge to: Make effective decisions as consumers, producers, savers, investors, and citizens.
In this economics activity, students will investigate marginal analysis.
Resources
Procedure
This activity is an individual activity where students view a video and respond to a set of questions. The activity is available in two ed-tech tools, a Quizizz Activity or ReadyAssessments Activity. It is also available as a worksheet. Select one of the options. Use the worksheet answer key as a teacher guide to check for correct answers. Begin by prompting students with the following:
Marginal analysis is a means of examining the costs and benefits when making a change in the production of goods and services – or when we are deciding how to use our time. Few things in life are zero-sum, meaning all or nothing. Instead, choices have both costs and benefits, and our goal is to maximize the benefits and minimize the costs. Marginal analysis can help us better understand how the decision-making process works.
Then, ask students to follow the instructions below:
- Watch the first 8 minutes of the Crash Course Economics: Episode 18 Marginal Analysis and Roller Coasters.
- Answer the questions in the Quizizz Activity, ReadyAssessments Activity, or worksheet.
Related Resources
Grades 9-12
Do Businesses Have Social Responsibility?
Grades 9-12