The Rule of Rational Choice Is That in Trying to Make

question 163

Multiple Choice

The rule of rational choice is that in trying to make themselves better off,people alter their behavior if the expected marginal benefits to them from doing so ____ the expected marginal costs they will bear.

• A) exceed.
• B) equal.
• C) are less than.
• D) Either a. or b.

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Definitions:

Pollutants

Substances introduced into the environment that cause harm or discomfort to humans or other living organisms, or damage the natural environment.

Public Goods

Goods which are both non-excludable and non-rivalrous, meaning they can be used simultaneously by more than one person and individuals cannot be effectively excluded from using them.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Nonexcludable

A characteristic of a good or service that prevents individuals who have not paid for it from being easily excluded from its use or benefit.