Which decision-making scenario best illustrates the concept of marginal benefit?

The scenario that best illustrates the concept of marginal benefit is the decision to spend an extra hour studying for an exam. This choice directly involves evaluating the additional benefit that comes from that extra hour of study—such as potentially improving grades or gaining a deeper understanding of the material. Marginal benefit refers to the additional satisfaction or value derived from consuming or using one more unit of a good or service, or, in this case, the additional unit of time spent studying.

When considering the benefits of additional study time, a student weighs the expected improvement in performance on the exam against the opportunity cost of not using that time for other activities. This analysis of weighing the incremental benefit against the cost is a core principle of economics and is fundamental to making informed decisions.

In contrast, the other choices do not focus on the incremental decision-making process in the same way. For example, purchasing a new car instead of saving for a house involves more significant, longer-term financial implications rather than examining an immediate marginal benefit associated with a single choice. Similarly, investing in stocks versus bonds is a broader decision based on risk tolerance and investment strategy rather than the immediate marginal benefits of an additional hour of study. Giving up a vacation to pay off debts reflects a trade-off involving larger commitments and