A Rational Decisionmaker

question 153

Multiple Choice

A rational decisionmaker

• A)ignores marginal changes and focuses instead on "the big picture."
• B)ignores the likely effects of government policies when he or she makes choices.
• C)takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.
• D)takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions.

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Definitions:

Understanding

The ability to comprehend or grasp the nature, significance, or explanation of something.

Experience

Refer to the knowledge or skill acquired by a person over time through involvement in or exposure to activities.

Accumulated Learning

The total knowledge and skills gained over time through education and experience.

Expertise

The specialized knowledge and skills developed through experience or training in a particular field.