Question

Daniel and his intramural team just won the co-ed volleyball tournament, and they’re celebrating at an all-you-can-eat pizza place. Daniel has had four slices of pizza and is trying to decide whether to have a fifth slice. He does not have to pay for it, but he is thinking about whether the increased calories of the fifth slice are worth it. Which foundation(s) of economics is he applying? Choose one or more: A. trade-offs B. microeconomics C. marginal thinking D. the principle that trade creates value

Answer 1

A and C.

Step-by-step explanation:

There are five foundations of economics:

-Incentives matter.

-Opportunity costs.

-Trade creats value.

-Life is about trade off.

Is a situation in which more of one thing necessarily means less of something else.

When desicions are made, people are always confronted with multiple alternative actions. Example, waking up for school.

The ultimate desicion should be the more efficient, profitable outcome.

-Marginal thinking.

The word marginal in economics means additional. It requires the evaluation of whether one more unit of something has higher additional benefits than additional costs.