Making an economically rational decision requires weighing prospective marginal benefits and marginal costs to oneself. considering all other people. always considering the long-run. Self-interest is not necessarily selfish, some say. In fact, self-interest likely includes an individual's consideration for C close friends and family. A strangers. B humankind as a whole. You were Incorrect. You were Incorrect. Budget constraints impose scarcity, and are based upon 0 U the prices of the items purchased. the limitation of the budget. how much utility one more unit of a good will provide. The house that Jeanne inherited from her mother can rent for $1500/month, but Jeanne decides to allow her brother to stay there for only $500 per month. This decision carried with it a zero monetary cost but a $1000 per month opportunity cost. $1000 per month monetary and opportunity cost. $500 per month monetary cost but a $1500 per month opportunity cost. The production possibilities model shows an inverse relationship between the amount of one thing that can be produced and the amount of something else because production of different types will compete for limited resources. of diminishing returns. the opportunity cost of producing more of something will fall. You were partially correct. You were Incorrect. You were incorrect. Which of the following statements are positive? Investing in electricity with photovoltaic cells is a growing trend. Installing solar will be worth the investment. Installing solar will provide a rate of return on investment of 5%. You were partially correct.