A Rational Decision Maker Takes an Action Only If the

question 90

Multiple Choice

A rational decision maker takes an action only if the

• A)marginal benefit is less than the marginal cost.
• B)marginal benefit is greater than the marginal cost.
• C)average benefit is greater than the average cost.
• D)marginal benefit is greater than both the average cost and the marginal cost.

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Definitions:

Word Fluency

The ability to rapidly retrieve words from memory, often tested by asking individuals to produce as many words as possible from a category in a limited time.

Fluid Intelligence

The aspect of intelligence involved in the ability to think abstractly, reason quickly, and solve problems in novel situations, independent of acquired knowledge.

Quick Reasoning

The ability to think and form judgments rapidly and efficiently.

Correlational Research

A type of non-experimental research method used to measure the extent to which two variables are related, without implying causation.