When Making a Rational Decision Which Requires the Consideration of Costs

question 71

True/False

When making a rational decision which requires the consideration of costs and benefits involved, the opportunity cost of a decision is always taken into consideration.

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Definitions:

Abilities

The skills, talents, or competencies a person has, which can be natural or developed, that enable them to perform specific tasks or actions.

Exertion

The physical or mental effort applied in order to achieve something.

Naïve Psychology

A concept in social psychology that refers to the natural human capacity to make sense of other people's behavior by attributing particular psychological states and traits to them.

Heider

Refers to Fritz Heider, an Austrian psychologist known for his work in the psychology of interpersonal relations and attribution theory.