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Questions and Answers
According to methodical individualism, what is the basis for choices?
According to methodical individualism, what is the basis for choices?
- Individual cost-benefit calculations (correct)
- Organizational behavior
- Social influence
- External control
What does economic cost-benefit analysis emphasize as relevant for individual choice?
What does economic cost-benefit analysis emphasize as relevant for individual choice?
- Variable costs
- Opportunity cost (correct)
- Fixed costs
- Sunk costs
In the context of resource constraints, what makes opportunity costs relevant?
In the context of resource constraints, what makes opportunity costs relevant?
- The availability of unlimited resources
- The absence of budget constraints
- The indifference to foregone alternatives
- Choosing one alternative means not choosing the other (correct)
What is the value of the foregone alternative relevant for in economic decisions?
What is the value of the foregone alternative relevant for in economic decisions?
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In the example provided, what is the opportunity cost if the high-quality TV is chosen?
In the example provided, what is the opportunity cost if the high-quality TV is chosen?
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