The Standard Economists Use to Assess Whether an Activity Should

question 3

Multiple Choice

The standard economists use to assess whether an activity should be undertaken is

• A) majority vote
• B) the marginal benefit assessment.
• C) the gold standard
• D) economic efficiency.

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Definitions:

Positivist Orientation

An approach in social science that emphasizes the use of empirical evidence and scientific methods to understand and explain social phenomena.

Exchange Theory

A social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties.

Rational Choice Theory

A theory in economics and sociology that suggests individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Psychological Principles

Psychological principles refer to fundamental theories and established facts derived from psychology that explain and predict behaviors and mental processes.