When choosing whether or not to undertake a _________________,such as adopting a new technology or vaccinating a child,a private decision-maker chooses to undertake the activity if he is aware of the opportunity and if he judges that the ______________ outweigh the _________.

Question

Quizplus · Accepted Answer

The question refers to a private decision-maker, which suggests that the decision is made on an individual level rather than collectively. Therefore, the activity is discrete (meaning it is limited to the individual) and the costs and benefits are private (meaning they only affect the individual). The decision is based on whether the private benefits of the activity outweigh the private costs, which is the case with both adopting a new technology and vaccinating a child. Option A and B are not correct as they refer to non-discrete activities and marginal social costs/benefits which are not relevant to the individual's private decision-making process. Option D is also incorrect as it refers to marginal private costs/benefits, which are only relevant when making a decision on the margin of an activity.

When Choosing Whether or Not to Undertake a _________________,Such as Adopting