Rational Choice

question 174

Multiple Choice

Rational choice

• A)is made by comparing different incentives.
• B)is what you must give up to get what you want.
• C)is always efficient.
• D)provides the answer to only the "how" question.
• E)is a choice that uses the available resources to best achieve the objective of the person making the choice.

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Definitions:

Nash Equilibrium

A concept in game theory where no participant can gain by unilaterally changing their strategy if the strategies of the others remain unchanged.

Gas Pump

A machine located at a service station that pumps liquid fuel like gasoline or diesel into a vehicle's tank.

Local Ordinance

Laws or regulations enacted by a local government authority that apply within its specific geographic area.

Price of Gasoline

The cost per unit volume of gasoline, influenced by various factors including crude oil prices, taxes, and demand.