A Rational Decision Maker Takes an Action If and Only

question 9

Multiple Choice

A rational decision maker takes an action if and only if

• A) the marginal benefit of the action exceeds the marginal cost of the action.
• B) the marginal cost of the action exceeds the marginal benefit of the action.
• C) the marginal cost of the action is zero.
• D) the opportunity cost of the action is zero.

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Definitions:

Ego

In psychoanalytic theory, the part of the psyche that mediates between the primal desires of the id and the moral demands of the superego.

Problem-Solving Skills

The ability to identify, define, and resolve problems through the application of appropriate strategies and critical thinking.

Cognitive

Relating to mental processes such as perception, memory, thinking, and problem-solving.

Psychodynamic Perspective

A theory in psychology that emphasizes unconscious psychological processes and contends that childhood experiences are crucial in shaping adult personality.