Question

If the benefits (correctly defined) of a doing something are greater than the costs (correctly defined) of doing whatever it is, what should one do?

a. Always do it
b. Only decide to do it if it is the best choice
c. Only decide to do it if there is no opportunity cost
d. Dont do it

Answer 1

In economics, if the benefits of doing something are greater than the costs, an individual should choose to do it. This decision-making process involves considering costs, benefits, and opportunity cost.

Step-by-step explanation:

In economics, when the benefits of doing something are greater than the costs, an individual should choose to do it. This is because rational decision making involves choosing actions that provide more benefits than costs.

For example, if there is a cost-benefit analysis and the benefits of a particular action outweigh the costs, it would be wise to choose that action.

It is important to consider the concept of opportunity cost as well. Opportunity cost is the value of the next best alternative that is given up when making a decision. In order to make the most informed decision, one should consider both the benefits and costs, as well as the opportunity cost.