According to the Rule of Rational Choice, What Must Occur

question 134

Multiple Choice

According to the rule of rational choice, what must occur for an individual to be willing undertake an activity?

• A) The expected marginal benefits must be less than the expected marginal costs.
• B) The total costs must exceed total benefits.
• C) The expected marginal benefits must be greater than the expected marginal costs.
• D) The expected marginal benefit must equal the expected marginal cost.

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Definitions:

Time Orientation

An individual's or culture's approach to time, focusing on the past, present, or future, and influencing priorities, planning, and punctuality.

Rationality

The quality of being based on or in accordance with reason or logic.

Individual Problem Solving

The process by which an individual identifies, analyses, and finds a solution to a problem on their own.

Programmed Decisions

Decisions that are routine and repetitive, for which established processes or rules exist.