State the Economic Decision Rule and Apply It to the Following

question 27

Essay

State the economic decision rule and apply it to the following situations:
(a) A personal computer costs about 2 cent per hour to operate. Every time it is turned on and off, there is a .00005 probability that the computer will fail, costing $700 to repair. Is it worthwhile to turn off your computer?
(b) Should you try out for the soccer or the baseball team?
(c) The date to withdraw from a course and get the $300 refund has passed. With 30 more classes left in the semester, should you drop the course?
(d) Your employer has offered you a 20% raise. Do you work more hours?

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Definitions:

Moral Development

The process through which individuals develop proper attitudes and behaviors towards other people in society, based on social and cultural norms, laws, and personal beliefs.

B. F. Skinner

An American psychologist and behaviorist best known for his work in developing the theory of operant conditioning.

A. Maslow

Refers to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation.

S. Freud

The Austrian neurologist Sigmund Freud founded the therapeutic approach of psychoanalysis, where psychopathological issues are addressed through a dialogue between the analyst and the patient.