Primeira página
/
Negócios
/
A family has a limited monthly budget and must choose between spending on entertainment or saving for future expenses. Which concept best explains their decision -making process? Comparative advantage, as they must maximize production efficiency. Market equilibrium, since prices determine their spending behavior. Rational choice theory, as they will weigh the benefits and costs of each option Marginal utility, since saving money has no immediate impact on well-being

Pergunta

A family has a limited monthly budget and must choose between spending on entertainment or saving for future
expenses. Which concept best explains their decision -making process?
Comparative advantage, as they must maximize production efficiency.
Market equilibrium, since prices determine their spending behavior.
Rational choice theory, as they will weigh the benefits and costs of each option
Marginal utility, since saving money has no immediate impact on well-being

A family has a limited monthly budget and must choose between spending on entertainment or saving for future expenses. Which concept best explains their decision -making process? Comparative advantage, as they must maximize production efficiency. Market equilibrium, since prices determine their spending behavior. Rational choice theory, as they will weigh the benefits and costs of each option Marginal utility, since saving money has no immediate impact on well-being

Solução

expert verifiedVerification of experts
4.7234 Voting
avatar
HermíniaProfissional · Tutor por 6 anos

Responder

The concept that best explains the family's decision-making process is 'Rational Choice Theory'.

Explicação

## Step 1<br />The problem presents a scenario where a family has to make a decision between spending on entertainment or saving for future expenses. The family has to weigh the benefits and costs of each option to make the best decision.<br /><br />## Step 2<br />The concept that best explains this decision-making process is the Rational Choice Theory. This theory is based on the assumption that individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.<br /><br />## Step 3<br />In this case, the family is making a decision based on the benefits and costs of each option. They are not necessarily maximizing production efficiency (Comparative Advantage), nor are they solely relying on market equilibrium or prices to determine their spending behavior.<br /><br />## Step 4<br />The family is not saving money for the sake of saving money, but rather for the benefits it will provide in the future. This is not an example of Marginal Utility, which is the additional satisfaction a consumer gets from having one more unit of a good or service.
Clique para avaliar: