The economic way of thinking pays special attention to costs, assumes individuals seek to maximize some objective, and focuses on choices at the margin.

Question

Quizplus · Accepted Answer

This statement accurately describes the principles of the economic way of thinking, which emphasize the importance of considering both explicit and implicit costs, recognizing that individuals have preferences and goals, and analyzing decision-making at the margin, where small changes in incentives or constraints can lead to significant shifts in behavior.

The Economic Way of Thinking Pays Special Attention to Costs