Making Rational Decisions at the Margin Means That People

question 102

Multiple Choice

Making rational decisions at the margin means that people

• A)make those decisions that do not impose a marginal cost.
• B)evaluate how easily a decision can be reversed if problems arise.
• C)compare the marginal costs and marginal benefits of each decision.
• D)always calculate the dollar costs for each decision.

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Definitions:

Free-riders

Individuals who benefit from the efforts and contributions of a group without offering equivalent participation or input.

Lower Cohesion

A state of reduced unity and agreement within a group, which can impact its effectiveness and performance negatively.

Uneven Communication Problem

This problem occurs when there is an imbalance in the flow of information among team members, leading to misunderstandings or lack of coordination.

Accurately Share

The process of precisely and correctly conveying information or knowledge to others.