People make decisions when choices involve
A)no benefits.
B)only benefits.
C)nominal costs.
D)opportunity costs.
E)unlimited resources.

Question

Quizplus · Accepted Answer

People make decisions based on the opportunity cost – what they must give up in order to make a particular choice. Choice A is not a factor in decision-making because no benefits mean there is nothing to give up. Choice B implies that the decision is already made because there are only benefits involved, rather than a trade-off. Nominal costs (Choice C) may be relevant, but not as much as opportunity costs. Unlimited resources (Choice E) would negate the need for decision-making altogether.

People Make Decisions When Choices Involve