Despite the warning on a package of cigarettes about the potential health hazards of smoking, a man lights up a cigarette. An economist would conclude that:
a. in the man's judgment, the expected marginal cost of smoking the cigarette outweighs the expected marginal benefit.
b. the man is behaving irrationally
c. the smoker is unconcerned about his future health.
d. in the man's judgment, the expected marginal benefit of smoking the cigarette outweighs the expected marginal cost.
d
Economics
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When there's asymmetric information, who tends to have the better information?
A) lender B) borrower C) intermediary D) equally likely to be the borrower or the lender
Economics
The branch of economics that focuses on decision making for the economy as a whole is called:
a. normative economics. b. macroeconomics. c. microeconomics. d. consumer economics.
Economics