Individuals Making Decisions About How Much to Purchase of a Product

question 301

Multiple Choice

Individuals making decisions about how much to purchase of a product with an external benefit base their decisions on which of the following?

• A) the price and marginal private benefit
• B) the economically efficient output
• C) the price and the marginal social benefit
• D) the size of the deadweight loss

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Definitions:

Cognitive Appraisal

The process of evaluating and interpreting an event or situation that leads to an emotional response, influencing how one reacts to the situation.

Irrational Belief

A conviction that lacks logical reasoning or evidence, often leading to dysfunctional behavior or thought patterns.

Destructive

Causing great and irreparable harm or damage, either physically, emotionally, or socially.

External Stressor

An outside factor or event that causes stress to an individual, varying widely from environmental conditions to life events.