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Suppose your New Year resolution is to get back in shape. You are considering various ways of doing this: you can sign up for a gym membership, walk to work, take the stairs instead of the elevator, or watch your diet.
Do a cost-benefit analysis to compare the alternatives.
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When making your decision about which activity to choose, you should consider the monetary cost ___ the opportunity cost of the activities. The goal is to choose the option that offers the greatest ____
as well as, net benefit
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During the process of optimization, economists believe that people are considering
the feasibility of a choice, given the information available at the time
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The goal of optimization for an individual is to maximize
overall well being
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Your budget constraint for entertainment illustrates the concept of ____ since as you increase your purchases of one item, you ___
trade offs, must decrease your purchases of the other item
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The _______- of an activity is a measure of what is given up when you do that activity.
opportunity cost
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comparing a set of feasible alternatives and picking the best one is an optimization process called
cost-benefit analysis
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When deciding whether to install visible countdown timers for pedestrians at crosswalks, which of the following would be considered in the cost-benefit analysis?
all apply
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Free riding occurs when ____ are out of sync with ____
people's private benefits, the public interest
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Which of the following is subject to the free-rider problem?
- -National security
- -Public libraries
- -neighborhood watch.
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Which of the following is more susceptible to the free-rider problem: state parks or public roads?
Use of public is more susceptible since even those who don't pay taxes still benefit, while state parks can charge for admission , so that everyone who goes pays their share.
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The amount produced by sellers must be ____ the amount purchased by buyers
equal to
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