. When the opportunity cost of a choice increases: A) the marginal benefits of t
ID: 1134983 • Letter: #
Question
. When the opportunity cost of a choice increases: A) the marginal benefits of that choice increase, as well B) individuals are more likely to choose that same option. C) the marginal benefits of that choice decrease. D) individuals are less likely to choose that same option 2. Deciding whether to study an additional hour for an exam by comparing the additional benefits to the additional costs of an extra hour of study is an example of A) the power of trade B) the social interest. C) the invisible hand D) marginal thinking. 3. As the FDA usestime and resources to ensure the safety of new drugs A) less; fewer people will die from taking unsafe drugs B) more; more people will die from taking unsafe drugs C) less; fewer people will die waiting for access to life-saving medicine D) more; fewer people will die waiting for access to life-saving medicine 4. If the costs of staying at a party a few more minutes are higher than the benefits, you should A) leave the party B) never have attended the party in the first place C) have thrown your own party. D) stay longer 5. In his book The Wealth of Nations, Adam Smith claimed that individuals: A) always consider the effect of their actions on others. B) are not concerned with resources. C) always act in an altruistic way D) are motivated by self-interest.
Explanation / Answer
1) Option C because the opportunity cost is a part of overall cost which when increased, discourages marginal benefit available to a consumer
2) Option D because thinking at margin is one the principles of rational decision making. Marginal means additional
3) Option B. Passing of a drug from FDA after approval takes time and when this time is increased, the number of unfortunate deaths increases
4) Option A as it is resulting in a net loss
5) Option D.
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