Under what condition will a rational individual choose to take an action?

Multiple choice question for Introduction To Economics. Select an option, then review the explanation below.

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The action aligns with moral principles.The action results in marginal costs higher than marginal benefits.The action yields marginal benefits greater than marginal costs.The action generates financial gain for the individual.

Explanation

A rational person decides to act only when the additional benefits of the action surpass the additional costs incurred. This means the marginal benefits must be greater than the marginal costs for the action to be considered rational.

Practice related questions from the same subject.

1.Which of the following factors directly influences the supply curve?
2.Under what condition is a market considered to be in equilibrium?
3.What type of relationship is depicted when a graph shows that as the values on the horizontal axis increase, the values on the vertical axis decrease?
4.Which two elements are essential to construct a straight-line graph?
5.How can a nominal value be converted into a real value?

Under what condition will a rational individual choose to take an action?

Explanation

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