24

Marginal decision-making by individuals:

Group of answer choices

involves comparing the change in the total cost to the change in total benefit when considering alternatives.

is only possible when opportunity costs are absent.

leads to irrational decisions.

is applicable to decisions involving consumption choices but not to those involving business choices.

25

Economic analysis is based on the premise that

Group of answer choices

people act only out of selfish motives.

people are always fully informed when making choices.

changes in the personal benefits or costs of an action influence behavior in an predictable way.

most human behavior is unpredictable.

26

Which of the following is a normative economic statement?

Group of answer choices

In the past, the speed limit has been lowered to 55 miles per hour on interstate highways.

Higher gasoline prices cause a decrease in the quantity of gasoline that consumers buy.

A comparison of costs and benefits should not be used to assess environmental regulations.

In other countries, Higher taxes on alcohol result in less drinking and driving.