When Price Signals Reflect _______ Benefits and _______ Costs of Choices

question 186

Multiple Choice

When price signals reflect _______ benefits and _______ costs of choices, we expect that the allocation of resources will be _______ .

• A) average; average; efficient
• B) marginal; marginal; inefficient
• C) marginal; average; efficient
• D) marginal; marginal; efficient

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Definitions:

Human Behavior

The study of how individuals act within society, influenced by psychology, culture, and environment.

Behavioral Economists

Economists who study the psychological, cognitive, emotional, cultural, and social factors affecting the economic decisions of individuals and institutions.

Models

Simplified representations of complex systems or processes, used to predict outcomes or understand a concept better.

Decision Processes

The series of steps or stages involved in making a choice or selecting an alternative.