QUESTION 39 39. Economic rationality or optimization means that people should compare the consequences of alternative actions or choices and select the one that maximizes net benefits (net of costs). O is not an acceptable approach to life according to many philosophers, because they claim that some things, such as human life, should not be subject to this kind of ooloulotion of costs and benefits

QUESTION 39 39. Economic rationality or optimization means that people should compare the consequences of alternative actions or choices and select the one that maximizes net benefits (net of costs). O is not an acceptable approach to life according to many philosophers, because they claim that some things, such as human life, should not be subject to this kind of ooloulotion of costs and benefits

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter1: What Economics Is About

Section: Chapter Questions

Problem 24QP

See similar textbooks

Similar questions

Cite three examples of recent decisions that you made in which you, at least implicitly, weighed marginal cost and marginal benefit.
Describe 3 ways in which human decision differs from the rational individual conventional economic theory with explanations please.
Describe the procedure of considering economic decisions?
3 ways by which human decision making differ from rational individual conventional economic theory
Your total benefits from spending time with your spouse are shown in the following table. Hours per Day 0 Total Benefit 0 20 38 54 68 80 90 98 104 Alternatively, you have the option of working as many hours as you want, earning $11 per hour. Assume this is the next best use of your time. Use the marginal principle to find your optimal number f hours to spend with your spouse per day. The optimal amount of time for you spend with your spouse is hours per day. (Enter your response as an integer.)
Describe three ways in which human decision making differ from the rational individual conventional economic thoery
describe 3 ways in which human decisions making differs from the rational individual conventional economic theory
a) Trade-offs are important part of economic decision making. You are supposed to Analyze and explain any three trade-offs that you face in your life. b) You plan to study on weekend and your friends ask you to go to a farm house with them. What do you think is the true cost of spending your weekend on a farmhouse with friends? c) You plan to spend your weekend working at your father’s superstore for a wage, but your friends ask you go play cricket at the weekend. What do you think is the true cost of spending your weekend playing cricket with friends?
Explain why and also explain when other three options would be right ?
Marginal Analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. This table displays a marginal analysis of buying an extra slice of pizza. The Marginal Benefit column represents the willingness to pay for each slice. Use the table to determine which of the following statements is most true? A) You will purchase 1 slice of pizza because the Marginal Benefit of the second slice exceeds the marginal Cost. B) You will purchase 2 slices of pizza because the Marginal Benefit of the third slice exceeds the marginal Cost. C) You will purchase 3 slices of pizzas because the Marginal cost of the fourth slice exceeds the Marginal Cost. D) You will purchase 2 slices of pizza because the marginal Cost of the third slice exceeds the marginal Benefit.
Mon poogle weld ascher andes one hamburger and one order of French fries, rather than two hamburgers and no Preech fries. Explain why economists consider this an example of rational decision making
Discussion Prompt: What are the limits of rational decision-making?