Question 2
Basic ConceptsWhich of the following is usually guiding human decisions?
- A.marginal benefit analysis
- B.cost benefit analysis
- C.average benefit analysis
- D.total benefit analysis
Show the answer and explanation
Answer: B (cost benefit analysis)
Explanation
People weigh what an action costs against what it brings; if the benefit is greater than the cost they are likely to go ahead. That is cost-benefit analysis.