The "Marginal Effect" refers to the change in an outcome or dependent variable resulting from a one-unit change in an independent variable. It is commonly used in statistics and econometrics to understand how small changes in one factor can influence another. For example, in a regression model, the marginal effect helps quantify how much a change in income might affect spending. In practical terms, the marginal effect can help policymakers and businesses make informed decisions. By analyzing these effects, they can determine the impact of changes in variables like tax rates or interest rates on economic behavior, allowing for better strategic planning and resource allocation.