Assume That an Individual Has to Decide Between a 2-Day

question 43

Multiple Choice

Assume that an individual has to decide between a 2-day vacation and a 3-day vacation to the same place.If he uses optimization using marginal analysis,he will ________.

• A) only think about the net benefits of the extra day
• B) compare the total net benefits of both alternatives
• C) choose the 3-day vacation only if the costs incurred on the third day exceed the benefits he receives
• D) spend more time to make a decision than he would had he used optimization using total value

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Definitions:

Bureau of Labor Statistics

A unit of the United States Department of Labor that is responsible for collecting and analyzing important economic data, including employment and unemployment statistics.

Unemployed

Individuals who are capable of working and actively seeking employment but are unable to find a job.

Cyclical Unemployment

Unemployment that results from economic downturns or recessions, where there is insufficient demand for labor.

Bureau of Labor Statistics

A U.S. government agency that collects and analyses critical economic information, particularly employment and price statistics.