Answered: When individuals face viable…

When individuals face viable alternatives, a) there is choice b) there is always cost c) A and B d) rational behavior is not possible

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 10P

See similar textbooks

Related questions

Q: Identify some essential elements common to any rational decision-making process?

A: Rational decision making is a complex process that contains nine essential elements. These are as…

Q: Consider the following graph. The fishery is managed as an competitive (open access) regime. Fishing…

A: The Gordon-Schaefer model is a bioeconomic model that is applied to the fishing industry. It may be…

Q: The relationship between businesses and households determines how income and output flow through the…

A: "Gross domestic product or GDP indicates the market or monetary value of all the final commodities…

Q: Are options b through h correct or incorrect?

A: The question is asking about the possible reasons for which imports can be limited. Different…

Q: The opportunity cost of an action is a) the money that you pay take it b)the Value of the best…

A: ‘Opportunity cost’ is what one must give up to get something. Simply speaking ‘Opportunity cost’ is…

Q: the quantity demanded of a good. Then the income elasticity of demand for the good is

A: Elasticity in Economics:Elasticity is used to signify the sensitivity of the quantity demanded or…

Q: Behavioral economics a. integrates psychological insights into economic models. b. relies…

A: Economics is the study mainly concerned with the manufacturing, delivery, and consumption of…

Q: A rational person will a) never make mistakes in choices. b) select the choice where the expected…

A: A rational individual has the ability to use all the relevant pieces of information to reach a sound…

Q: What we sacrifice, or give in return, when we make a decision or make a choice is: Response option…

A: Since the resources are scarce, there is a tradeoff between goods.

Q: Are options b through e correct or incorrect?

A: A price ceiling is the commanded most extreme amount a dealer is permitted to charge for a product.…

Q: Economics helps managers understand goal-oriented decision making.

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Which definition best describes real world interpretation of "the opportunity cost of…

A: It refers to the value of resources used or given up to produce a service or good. Explicit Costs:…

Q: The increase in saving account deposits would Select one: a. increase M1. b. have no effect on M2.…

A: Money supply refers to all the currency and liquid assets in an economy at a given point in time.…

Q: The law of explains why people and societies rarely make all-or-nothing choices. diminishing…

A: (A)

Q: Why does knowing the facts help people maximize their choices

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Purposeful behavior means that: people are selfish in their decision-making. people…

A: Purposeful behavior means that people weigh costs and benefits to make decisions.

Q: b. When producers plan to participate in the market for the foreseeable future they are more likely…

A: If firms in the market are expecting to operate in the market for a longer period of time, then…

Q: A monopolist faces demand Q = 20 - 2p and has cost C(q)=5. Total output will equal, QM?

A: The optimum output that would be produced by the monopolist is at the point where the profits are…

Q: An expansionary fiscal policy can increase the level of aggregate demand by reducing corporate tax…

A: The term "fiscal policy" refers to a government's approach to influencing the state of the economy…

Q: Is the opportunity cost of an action a subjective evaluation?

A: Subjective evaluation refers to the judgment based on personal beliefs and opinions. According to…

Q: Describe the Rational Decision making Process?

A: Rational decision-making is a multi-stage process in which alternatives are selected. The objective…

Q: In economics, we assume that choices are based on desired outcomes. This concept is known as:

A: Economics deals with how individuals and society choose to allocate scarce resources among…

Q: How is the Rational decision making a complex process?

A: Rational decision making is a multi-step process used for making bets decision or choice when…

Q: Describe the procedure of considering economic decisions?

A: The following procedure should be kept in mind while taking economic decisions: Identify the…

Q: Price elasticity measures the responsiveness of the quantity demanded or supplied to a good to a…

A: Economics is the study of shortage and how it impacts a variety of complex social issues, including…

Q: 10. We consider the IS model where investment is given by = ā¡ - b(R-7). An increase in the…

A: The investment function is the relationship between investments and the rate of interest. Rates of…

Q: Think of an economic decision you made recently wherein the benefit outweighed the cost (or the cost…

A: Marginal Cost (MC): - it is the additional cost incurred due to the production of additional units…

Q: Rational Behavior imples that a) a person recognizes the real cost of acquiring or doing something.…

A: Rational behavior implies a decision-making process that depends on making choices that outcome in…

Question

When individuals face viable alternatives,

a) there is choice

b) there is always cost

c) A and B

d) rational behavior is not possible

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

How is the Rational decision making a complex process?
What we sacrifice, or give in return, when we make a decision or make a choice is:Response option group a) A cost that can be avoided if we make well-thought-out decisions. b) The opportunity cost of said decision. c) The cost incurred for not making a good decision. d) The additional cost of purchasing an additional unit of product.
Discussion Prompt: What are the limits of rational decision-making?
Marginal analysis is one of the most useful concepts in economic decision making. Discuss and show examples including graphs to support your answer.
Behavioral economics a. integrates psychological insights into economic models. b. relies on the assumption that homo economicus describes economic decision-making. c. assumes that economic agents have full information about the conditions surrounding their decisions. d. All of the above are correct.
Examples of form utility?
learn-eu-central-1-prod-fleet01-xythos.content.blackboardcdn.com Imagine there is an outbreak of 'mad sheep' disease, which wipes out a considerable portion of the sheep population in Scotland. This results in a shortage of Haggis and an increase in its price. a) Show the effect of this price increase on Angus' budget line and optimal choice, and explain the forces underpinning this outcome. (Hint: Consider substitution and income effects). b) Assuming that Haggis' price continues to increase over the subsequent months, derive the demand curve for Haggis. c) Discuss the income and substitution effects within the context of this price increase assuming that Haggis is an inferior good. 2 26% 1
Describe the procedure of considering economic decisions?
Think of an economic decision you made recently wherein the benefit outweighed the cost (or the cost outweighed the benefit).
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.
Nora's marginal benefit exceeds her marginal cost by the greatest amount when she is consuming 10 units of product Y. To maximize her net benefit, Norah should: Select one: a. consume more than 10 units of the product. b. have stopped consuming the product before he reached 10 units. c. give up more of good Y for another good d. stop consuming at 10 units. e. not enough information to answer the question.
Are options b through e correct or incorrect?