Final answer:
Marginal gains typically result in greater long-term benefits, while also being sustainable and easier to achieve. Examining a tax cut and increased government spending illustrates different impacts on the economy: immediate consumer spending versus long-term productivity gains. Similarly, international trade gains are more significant for smaller countries in relation to their economy size.
Step-by-step explanation:
Marginal gains refer to the small incremental improvements in any process which, when added together, make a significant improvement. The philosophy of marginal gains is especially popular in business, economics, and sports where incremental changes can lead to long-term benefit. Thus, marginal gains are not only easier and more sustainable but also produce a greater long-term benefit.
In the context of economic policies, comparing the effects of a tax cut on income versus an increase in government spending on roads and bridges, both have distinct short-term and long-term impacts on the economy. A tax cut may result in immediate increase in consumer spending and drive economic growth, but increasing government spending on infrastructure can improve productivity and economic efficiency over the long-term. The same principles apply to international trade, where the gains can sometimes be more important to smaller countries because these gains represent a larger proportion of their overall economy.