Economists Reason That the Optimal Decision Is to Continue Any

question 89

Multiple Choice

Economists reason that the optimal decision is to continue any activity up to the point where the

• A)marginal benefit is zero.
• B)marginal benefit is greater than the marginal cost.
• C)marginal cost is zero.
• D)marginal benefit equals the marginal cost.

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Definitions:

Spillover Effect

A phenomenon where an occurrence in one area, sector, or context affects another; in psychology, it may refer to emotions or behaviors transferring from one area of life to another.

James-Lange Theory

A theory of emotion suggesting that emotions occur as a result of physiological reactions to events.

Cannon-Bard Theory

A theory of emotion that proposes emotions and bodily reactions occur simultaneously and independently of one another.

Adoptive Parents

Individuals who legally take on the responsibility of raising a child who is not biologically their own.