The Marginal Decision Rule as Applied to Regulation States That

question 97

Multiple Choice

The marginal decision rule as applied to regulation states that regulations:

• A) should be undertaken when their marginal benefits exceed their marginal costs.
• B) should be undertaken when their marginal benefits are less than their marginal costs.
• C) that improve safety should be undertaken, whatever the costs.
• D) should be designed to minimize the net benefit.

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Definitions:

Action Planning

The process of defining strategies, tactics, and actions to achieve a specific goal or objective.

Groupthink

A psychological phenomenon in which the desire for harmony and conformity in a group results in an irrational or dysfunctional decision-making outcome.

Devil's Advocate

Playing the devil’s advocate involves taking a contrary position or argument, not necessarily personally held, to challenge assumptions and stimulate critical thinking in a discussion.

Critical Evaluator

An individual skilled in assessing situations, arguments, or evidence objectively to make reasoned judgments.