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Questions and Answers
What concept can greatly enhance the ability to understand the real-world behavior of decision-makers?
What concept can greatly enhance the ability to understand the real-world behavior of decision-makers?
- Perfect competition
- Opportunity cost (correct)
- Supply and demand
- Elasticity of demand
According to the provided text, which decision-making principle is highlighted as crucial for individuals, businesses, and society?
According to the provided text, which decision-making principle is highlighted as crucial for individuals, businesses, and society?
- Decisions made at the margins (correct)
- Scarcity
- Perfect competition
- Barter economy
In the context of decision-making, what is meant by 'marginal'?
In the context of decision-making, what is meant by 'marginal'?
- The additional benefits or costs of a decision (correct)
- The total benefits of a decision
- The sunk cost of a decision
- The opportunity cost of a decision
Which economic concept suggests that resources should be allocated only when marginal benefits exceed marginal costs?
Which economic concept suggests that resources should be allocated only when marginal benefits exceed marginal costs?
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What is the key criterion for undertaking actions according to the text?
What is the key criterion for undertaking actions according to the text?
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Which term is used as a substitute for 'marginal' in decision-making contexts?
Which term is used as a substitute for 'marginal' in decision-making contexts?
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