Asked by
Shaho Shwani
on Dec 12, 2024Verified
Which of the following is most consistent with economizing behavior?
A) If you get the same satisfaction from a hamburger and a fish sandwich, you should purchase the one that costs the most.
B) Even if you know how to paint, hiring someone to do the job is consistent with economizing behavior, if your opportunity cost is high enough.
C) If the government provides a good free to citizens, the opportunity cost of the good is zero.
D) If you get the same satisfaction from going to the opera and going to an art museum, it makes no difference which you choose.
Economizing Behavior
The practice of minimizing costs or expenditures while achieving desired outcomes.
Opportunity Cost
The penalty of overlooking the closest preferable alternative in the course of decision-taking.
Satisfaction
The feeling of pleasure or contentment arising from meeting one's needs or expectations.
- Identify the limited availability of resources and the necessity for efficient utilization.
- Acquire knowledge on the methodology of formulating rational decisions through the assessment of marginal benefits versus marginal costs.
Verified Answer
JC
Learning Objectives
- Identify the limited availability of resources and the necessity for efficient utilization.
- Acquire knowledge on the methodology of formulating rational decisions through the assessment of marginal benefits versus marginal costs.
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