Asked by Yassine Wydadi on Jun 30, 2024
Verified
Economic decision makers will continue to acquire information only as long as the expected additional benefit exceeds the expected additional cost of the information.
Expected Additional Benefit
The anticipated extra advantage or income gained from making a particular business decision or investment.
Expected Additional Cost
The anticipated expenses that are not initially accounted for, occurring as a consequence of a new action or decision.
- Acquire knowledge of marginal analysis and its application in economic decision-making.
- Identify the characteristics of economic theories, including their predictive abilities and the role of information in decision-making.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
True
Explanation :
This statement accurately reflects the basic economic principle of marginal analysis, which considers the additional benefits and costs of each decision or action. When the expected benefits of acquiring information outweigh the expected costs (such as time, effort, and money), economic decision makers are likely to seek out and use that information. However, if the expected costs outweigh the expected benefits, decision makers may choose to forgo that information and make decisions based on less complete information or intuition.
Learning Objectives
- Acquire knowledge of marginal analysis and its application in economic decision-making.
- Identify the characteristics of economic theories, including their predictive abilities and the role of information in decision-making.
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