Which of the following is one of the four economic ginciples of individual decision making? O Rational people make decisions based on average costs and benefits. O Rational people respond to incentives in predictable ways. The cost of something is the amount of money you pay to get it. O Both b and c are correct. Oa, b, and c are all correct.

Which of the following is one of the four economic ginciples of individual decision making? O Rational people make decisions based on average costs and benefits. O Rational people respond to incentives in predictable ways. The cost of something is the amount of money you pay to get it. O Both b and c are correct. Oa, b, and c are all correct.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 10P

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Which of the following is one of the four economic principles of individual decision making? O Rational people make decisions based on average costs and benefits. O Rational people respond to incentives in predictable ways. The cost of something is the amount of money you pay to get it. O Both b and care correct. O a, b, and c are all correct.
Question 7: When economists state that individuals make rational choices, they mean: O individuals always make the right choice that improves their health and longevity. O most consumer decisions require individuals to spend a long time doing substantial background research. price is generally less relevant than benefit when an individual makes decisions. O individuals compare the expected benefits and costs of actions when making decisions.
Which of the following statements is NOT correct? Select one: O a. If poverty was eliminated there would be no reason to study economics. O b. Economics is a behavioral science. O c. Economic analysis can be used to explain how both individuals and societies make decisions O d. In large measure, economics is the study of how people make choices.
Which has a good example of an opportunity cost? Which one is an example of economically rational decision-making? 1. "To begin, I began selling prints of my pictures in 2019 throughout 2020. It's now closed. USPS and UPS were the options I had during this period to ship out orders. UPS was expensive at the moment for smaller or lightweight packages whereas USPS offered a cheap price for these types of packages. UPS ships more than 220 internationally while USPS ships to certain international destinations. I have chosen USPS over UPS, orders were delivered on time and without damage by the United States Postal Service. The opportunity cost is the benefit of UPS shipping. " 2. "To begin, I began selling prints of my pictures in 2019 throughout 2020. USPS and UPS were the options I had during this period to ship out orders. I chose to ship my orders via UPS rather than USPS since it had the choice to ship orders internationally. While USPS is cheap and has fast shipping. Shipping the…
The New York Times reports that cruise lines have been slashing prices and cruise sales are up. It says this surge of interest tells us that despite the uncertain economic climate, people clearly need more fun in their lives and view their vacations as a valuable and necessary part of it. How would you make a rational choice about taking a cruise? To make a rational choice you would O A compare the marginal benetit from taking the cruise with the marginal cost of the cruise O B. consider the length of the cruise and the route it will take OC. chose the cruise line with the cheapest prnce regardless of its amenities O D. check with the National Hurricane Center about weather onroute O E chose the ship with the most amenities regardless of the price of the cruise
Question 3 The difference between positive and normative economics is best summarized as saying that positive economics is descriptive, while normative economics is prescriptive. O positive economics is pessimistic, while normative economics is optimistic. O positive economics is objective, while normative economics is biased. O positive economics is biased, while normative economics is objective.
Explain why and also explain when other three options would be right ?
Joab and his friends used to play a game where they put on a dog's electric fence collar and tried to stand over the electric fence line because, after careful consideration of the costs and benefits, they decided that the benefits of watching their friends get shocked outweighed the costs of being shocked themselves. According to the economic way of thinking, by playing this game, Joab and his friends were O not responding to the incentives they faced. making an irrational choice. making a rational choice. not fully considering the costs and benefits of their decision since this is obviously a mistake for anybody to do.
Using incentives, how could we get someone to change their behavior? O Increase the benefits of activities we want people to perform O Increase the costs of activities we want people to perform Give people more information about possible benefits and costs of activities O Eliminate the opportunity cost of making choices
Which of the following would shift an economy's production possibilities curve to the left? Select one: O a. the country discovers a new energy source O b. dramatic increases in economic growth O c. a major increase in the number of people in the labour force O d. an increase in the retirement age O e. the country experiences a major natural disaster affecting its capital goods
2. Which words best complete the following sentence ? A rational decision maker always chooses the option for which marginal benefit is _______ marginal cost?
Detail two cognitive biases , what are own examples of these biases. How do these rules of thumb help us make decisions? How do they sometimes trick us into wrong decisions? What can we do to avoid the bias?