Question

Effective decision making requires comparing the additional costs of alternatives with the additional benefits. This is talking about "_________" A. Many choices we face involve marginal thinking B. Scarcity forces us to choose C. People face trade-off D. People engage in rational decision making

Answer 1

Answer:

A. Many choices we face involve marginal thinking

Explanation:

The sentence refers to the fact that most of the choices we make do not involve "all or nothing" decisions and are therefore called marginal decisions.

It means we are involved in comparing marginal costs to marginal benefit, something that is not too vital or life-changing.

In case the cost and benefit do not compare, it is always good not to go to options when the cost exceeds the benefit. That is why we need to learn how to make effective decisions and economically benefit from the marginal thinking process.