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Principles for understanding individual choices

Can you please check my answers?

Which of the following is NOT one of the four basic principles for understanding individual choices.
A. Resources are scare.
B. The real cost of something in the money that you must pay to get it
C. "how much" is a decision at the margin
D. People usually take advantage of opportunities to make themselves better off.

My answer is C

When markets don't achieve efficiency, then
a. they must achieve equity
b. government must be participating in the market
c. government may intervene to improve society's welfare
d. non of the above occurs

My answer is C

Market failure occurs when
a. prices of essential goods such as gas become very high
b. individual actions have side-effects that are not properly taken into account
c. mutually beneficial trades take place
d. all of the above occurs.

My answer is D

Thank you

Solution Preview

Which of the following is NOT one of the four basic principles for understanding individual choices.
A. Resources are scare.
B. The real cost of something in the money that you must pay to get it
C. "how much" is a ...

Solution Summary

This explains the principles for understanding individual choices

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