Human Behavior and Economic Rationality Quiz
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Questions and Answers

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?

  • Variable costs
  • Opportunity cost (correct)
  • Fixed costs
  • Sunk costs

    • 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?

    <p>Individual choice</p> Signup and view all the answers

    In the example provided, what is the opportunity cost if the high-quality TV is chosen?

    <p>&quot;Medium quality TV&quot;</p> Signup and view all the answers

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