The economic way of thinking stresses that
A) changes in personal costs and benefits will exert a predictable influence on the choices of human decision makers.
B) only direct monetary costs matter in making decisions.
C) if a good is provided free to an individual, its production will not consume valuable scarce resources.
D) secondary effects are not important to consider when making decisions.

Question

Quizplus · Accepted Answer

The economic way of thinking emphasizes the importance of weighing costs and benefits when making decisions. This includes not only direct monetary costs, but also other factors such as time, effort, and opportunity costs. Additionally, the economic way of thinking acknowledges that providing goods or services for free still involves the use of scarce resources, and that secondary effects (i.e. unintended consequences) should be taken into account when making decisions.

The Economic Way of Thinking Stresses That