Rational People Make Decisions "At the Margin" by Comparing

question 34

Multiple Choice

Rational people make decisions "at the margin" by comparing

• A)average costs and benefits.
• B)total costs and benefits.
• C)additional costs and benefits.
• D)opportunity costs and benefits.

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Definitions:

Generalize

To draw broad conclusions from specific instances, making the information applicable to a larger group or situation.

Population

The total number of inhabitants of a particular town, area, country, or the total number of individuals within a specific group or category.

Sample

A subset of a larger population or group, selected for analysis or experimentation, intended to be representative of the whole for research purposes.

Purpose Statements

Sentences that clearly outline the intent or goal of a document, presentation, or research project, guiding the content direction.