When People Make Rational Choices,they

question 269

Multiple Choice

When people make rational choices,they

• A) behave selfishly.
• B) do not consider their emotions.
• C) weigh the costs and benefits of their options and act to satisfy their wants.
• D) necessarily make a decision in the social interest.
• E) are necessarily making the best decision.

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Definitions:

Marginal Products

The additional output resulting from the use of one more unit of a variable input while holding other inputs constant.

Separating Equilibrium

A condition in game theory or economics where different types of participants are sorted into different equilibria based on their characteristics or type.

Pooling Equilibrium

A situation in game theory where different types with different characteristics choose the same strategy, making it impossible to distinguish between them based on their actions.

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.