The Cost-Benefit Principle:
A. describes how people behave once they have enough education.
B. provides little insight into how people actually chose between alternatives.
C. provides an abstract model of how people should choose between alternatives.
D. fully captures how people choose between alternatives.
Answer: C
You might also like to view...
Traditional economic models ________ the fact that people sometimes regret making decisions with perfectly predictable consequences.
A. can easily explain B. are supported by C. account for D. cannot explain
In the reality TV show Storage Wars, people bid on the contents of repossessed storage units without being able to evaluate the contents. This is an example of a ________ auction
A) common value B) private value C) Dutch D) second-price
A decrease in demand is represented by
a. a shift outward of the entire demand curve. b. a shift inward of the entire demand curve. c. a movement along the demand curve in a southeasterly direction. d. a movement along the demand curve in a northwesterly direction.
If input prices rise as industry output expands, then a perfectly competitive firm's marginal cost and average cost curves will: a. shift upward
b. shift downward. c. not shift. As the firm increases production, however, costs increase as the firm moves upward to the right along these curves. d. not shift. As the firm increases production, however, costs decrease as the firm moves downward to the left along these curves.