Economics promotes which of the following as the way to make the best decision?
A)Continue an enjoyable activity as long as you do not have to pay for it.
B)Continue an enjoyable activity until it is no longer enjoyable.
C)Continue an enjoyable activity until you cannot afford to pursue it.
D)Continue an enjoyable activity up to the point where its marginal benefit equals its marginal cost.

Question

Quizplus · Accepted Answer

Economics is all about making rational decisions that maximize benefits and minimize costs. Therefore, the best decision is to continue an activity (even if it is enjoyable) only up to the point where its marginal benefit equals its marginal cost. This ensures that the activity is truly worth pursuing and that resources are being allocated efficiently. Choice A may not allow for efficient allocation of resources since the focus is only on enjoyment and not cost, whereas Choices B and C do not take into account the costs and benefits of the activity.

Economics Promotes Which of the Following as the Way to Make